G7 nations vow to cap Russian oil price

Berlin, September 2

Finance Ministers from the Group of Seven (G7) industrial powers on Friday pledged to put in place a system designed to cap Russia’s income from oil sales, an idea that the nations’ leaders had promised to explore at their summit in June.

The aim is to reduce Russia’s revenues and, by doing so, its ability to fund its war in Ukraine, while also limiting the impact of the war on global energy prices.

In a statement issued by Germany, which chairs the G-7 this year, the ministers said they confirm their joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally. Providing those services “would only be allowed if the oil and petroleum products are purchased at or below a price (‘the price cap’) determined by the broad coalition of countries adhering to and implementing the price cap”, they said.

The statement did not give any figure for a potential price cap and also did not specify when the G-7 aims to finalise the plan. It said: “We invite all countries to provide input on the price cap’s design and to implement this important measure.” When they met in June in Germany, the leaders of the G-7 — the United States, Germany, France, Britain, Italy, Canada and Japan — agreed to explore the feasibility of measures to bar imports of Russian oil above a certain level. — AP

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