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G7 countries agree on introducing a price cap on Russian oil

Posted at September 2, 2022 » By : » Categories : News » Comments Off on G7 countries agree on introducing a price cap on Russian oil

The G7 has today announced its plan to impose a price cap on purchases of Russian oil.

The coalition which includes Canada, France, Germany, Italy, Japan, the UK and the US has decided on implementing this measure to “reduce Russian revenues and Russia’s ability to fund its war of aggression whilst limiting the impact of Russia’s war on global energy prices, particularly for low and middle-income countries, by only permitting service providers to continue to do business related to seaborne Russian oil and petroleum products sold at or below the price cap”.

G7 finance ministers said they would work to establish a “broad coalition” in order to “maximise effectiveness” of the price cap.

In their joint statement, officials have urged “all countries that still seek to import Russian oil and petroleum products to commit to doing so only at prices at or below the price cap”.

Just before the announcement, the Kremlin warned that introducing a price cap on Russian oil exports would trigger Russian retaliation.

Commenting on the announcement, the Chancellor Nadhim Zahawi said the oil price cap would “collectively protect our citizens from oil price shocks next year. That is a significant step forward”.

Article source: https://www.energylivenews.com/2022/09/02/g7-countries-agree-on-introducing-a-price-cap-on-russian-oil/

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