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FINANCE ministers from the G7 on Friday solidified their intention to implement a price cap on Russian oil that would help limit energy revenues to Moscow while maintaining supplies of crude oil.
In a joint statement issued following a virtual meeting, the G7 said it seeks “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.”
The measure, which “builds on and amplifies the reach of existing sanctions”, is designed to “reduce Russian revenues and Russia’s ability to fund its war of aggression” in Ukraine while also limiting its impact on global energy prices.
The G7 reiterated its “steadfast” support for Ukraine and repeated its condemnation of “the brutal, unprovoked, unjustifiable and illegal war” waged by Russia, with the help of Belarus.
The ministers from the world’s seven wealthiest industrialized nations and the European Union also acknowledged that “the economic costs of the war and consequent price increases are felt disproportionately by vulnerable groups across all economies and particularly by those countries already facing food insecurities and fiscal challenges.”
They also welcomed the EU’s decision to explore ways to curb rising energy prices and even consider the possibility of temporarily setting ceilings for import prices.
It remains to be seen how effective the G7’s proposed price cap will be without the backing of China and India, two of the world’s top three consumers of oil.