BERLIN
The West’s biggest economies 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.
The finance ministers of the Group of Seven influential nations announced their intention to ban maritime services transporting Russian oil if its price is not approved by ‘international partners.’ “We commit to urgently work on the finalization and implementation of this measure,” representatives from the US, Canada, Germany, France, Italy, the UK and Japan said in a joint statement without specifying the cap level, foreign media reported.
“We seek to establish a broad coalition in order to maximize effectiveness and urge 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,” they added. The move is aimed at slashing Moscow’s revenues while maintaining a flow of its crude to the international markets, to avoid a price surge.
“We will curtail [Russian President Vladimir] Putin’s capacity to fund his war from oil exports by banning services, such as insurance and the provision of finance, to vessels carrying Russian oil above an agreed price cap,” British Finance Minister Nadhim Zahawi reportedly said, according to a tweet by a Sky News reporter.
