G7 agrees to explore cap on Russian oil price
The Group of Seven economic powers have agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price, they said on Tuesday, aiming to deplete Moscow’s war chest.
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The war in Ukraine and its dramatic economic fallout, in particular soaring food and energy inflation, dominated this year’s summit of the group of rich democracies at a castle resort in the Bavarian Alps.
An oil price cap would ratchet up existing Western pressure on Russia from sanctions, which German Chancellor Olaf Scholz insisted would stay until Russian President Vladimir Putin accepted failure in Ukraine.
There is only one way out: for Putin to accept that his plans in Ukraine will not succeed,” Scholz told a closing news conference at the end of the three-day G7 summit he hosted.
The idea behind the cap is to tie financial services, insurance and the shipping of oil cargoes to a price ceiling. A shipper or an importer could only get these if they committed toa set maximum price for Russian oil.