G-7 Nations To Put a Global Price Cap On Russian Oil

A worldwide price cap on Russian oil exports could be part of the G-7 economic measures that Joe Biden and the group leaders will soon announce in an effort to put pressure on Vladimir Putin to cease the conflict in Ukraine.

In a conference call with reporters, a senior administration official said the leaders were finishing up details and were “very close” to urgently guiding their respective cabinet ministers to build a system to establish a global price cap for Russian oil supplies to countries other than the European Union, the United States, and other G-7 nations.

“The goal here is to starve Russia, starve Putin, of his main source of cash and force down the price of Russian oil to help blunt the impact of Putin’s war at the pump,” said the official said under anonymous conditions.

Due to sanctions implemented in the early stages of the war, on Monday, Russia defaulted on its foreign currency debt for the first time in more than 100 years. The Bolshevik Revolution of 1918 was the last time the country defaulted on its foreign debt.

It is still unclear how long it will take the G-7 leaders to reach a final agreement, as well as how much of a price cap will be imposed.

However, arguments about the agreement have started between the leaders.

France’s Emmanuel Macron wants the price cap to include natural gas, while Germany’s Olaf Scholz believes that an oil price cap can only succeed if all buyers agree to it in advance. Italian Prime Minister Mario Draghi, on the other hand, wants to ensure that the leaders focus on a cap on Russian oil as a method to reduce a major cause of inflation.

The leaders will soon announce other measures like increased tariffs on some Russian products as well as more sanctions against individuals responsible for human rights abuses, including war crimes and profiteering.

Original source material for this article taken from here