G7 countries agree to cap the price of Russian oil
The West’s biggest economies on Friday agreed to impose a price cap on Russian oil in an attempt to reduce Moscow’s ability to fund its war in Ukraine without further stoking global inflation.
Finance ministers from the G7 group of countries — the United States, Japan, Canada, Germany, France, Italy and the United Kingdom — said they would ban the provision of “services which enable maritime transportation of Russian-origin crude oil and petroleum products globally” above the price cap. That could block insurance cover or finance for oil shipments.
The maximum price would be set by “a broad coalition” of countries, they said in a joint statement. It would take effect alongside the European Union’s next batch of sanctions, which include a ban on seaborne imports of Russian oil starting in December.
Russia had already threatened to retaliate by banning oil exports to countries that implement a price cap.
“We will simply not supply oil and petroleum products to such companies or states that impose restrictions, as we will not work non-competitively,” Deputy Prime Minister Alexander Novak told reporters Thursday, according to state news agency TASS.
The Biden administration has been pushing for governments to introduce a price cap for months. The West has already sanctioned many Russian energy exports, but Moscow has continued to earn billions of dollars a month by diverting oil to China and Asia.
http://www.cnn.com/2022/09/02/business/russia-oil-price-cap-g7-intl-hnk/index.html
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