The G7 today announced its intention to impose a price cap on Russian oil purchases.
The coalition that includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States decided to implement this measure to “reduce Russian income and Russian capacity to finance its war of aggression while limiting the impact of Russia’s war on world energy prices”. , especially for low- and middle-income countries, by only allowing service providers to continue doing business related to Russian oil and oil products transported by sea sold at or below the ceiling price”.
G7 finance ministers said they would work to establish a “broad coalition” to “maximize the effectiveness” of the price cap.
In their joint statement, the officials urged “all countries still seeking to import Russian petroleum and petroleum products to commit to do so only at prices at or below the ceiling price.”
Just before the announcement, the Kremlin warned that introducing a price cap on Russian oil exports would trigger Russian retaliation.
Commenting on the announcement, Chancellor Nadhim Zahawi said capping oil prices would “collectively protect our citizens from oil shocks next year. This is a significant step forward”.