G-7 Agrees to Set Price Cap on Russian Oil

Politics Economy

Washington, Aug. 2 (Jiji Press)--Finance ministers and central bank heads of the Group of Seven major powers Friday agreed to introduce a price cap on Russian oil as a sanction for Moscow's invasion of Ukraine.

Meanwhile, Russia said that it may retaliate by halting oil exports to parties implementing the cap.

"The price cap is specifically designed 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," the G-7 officials said in a joint statement issued after an online meeting.

The measure is "useful" in accomplishing such purposes, Japanese Finance Minister Shunichi Suzuki told a press conference after the meeting.

The financial officials discussed details of the cap after the G-7 leaders agreed to consider such a limit at their summit in Germany in June.

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