G7 nations agree on Russian oil price cap

The Group of Seven (G7) of leading western economies reached an agreement on Tuesday to set a price cap on Russian oil exports, Politico reported, citing unnamed officials.

The details of the agreement were not disclosed. According to the report, however, the US proposed lifting sanctions on insurance for ships transporting Russian oil only if countries agreed to buy it at a set maximum price, thereby enforcing a price cap.

G7 member states also rejected the idea of ​​a global price cap on oil prices proposed by French President Emmanuel Macron on Monday. The proposal was reportedly dropped by the US and Germany, and France had agreed to withdraw it.

The deal comes as Western countries struggle to cope with soaring energy prices and inflation resulting from their sanctions and embargoes on Russian oil. While the restrictions aimed at the “Russian war chestAllegedly used to finance the ongoing military operation in Ukraine, Moscow is making more money from its energy exports than before the sanctions due to higher prices.

The idea of ​​a price cap was first put forward by US Treasury Secretary Janet Yellen earlier this year and then picked up by the G7, which reportedly had “constructive discussions on this topic over the past three days at the annual summit in Germany.