G-7 to Mull Russian Oil Price Cap as New Sanction

Economy

Schloss Elmau, Germany, June 28 (Jiji Press)--The Group of Seven major powers said Tuesday that they will consider imposing a price cap on Russian oil to reduce Moscow's energy revenues as a fresh sanction for its invasion of Ukraine.

Leaders of Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union made the announcement in a joint statement to wrap up their three-day meeting in Schloss Elmau, Germany, from Sunday.

"We will continue to impose severe and immediate economic costs on President (Vladimir) Putin's regime for its unjustifiable war of aggression against Ukraine," the statement said.

The U.S.-proposed price cap is designed to erode Russia's capability to finance the war. This will not be attained by merely banning the import of Russian oil, which raises crude oil prices.

The G-7 members will consider options for prohibiting all services enabling transportation of Russian seaborne crude oil and petroleum products globally unless the oil is purchased at or below a price to be agreed in consultation with international partners, the statement said.

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Jiji Press