G7 Agrees To Impose Price Cap On Russian Oil : Ukraine war

In an effort to hinder Moscow's ability to finance the war in Ukraine, members of the G7 have decided to set a price restriction on Russian oil. The cap on crude oil and petroleum products, according to finance ministers, will also help bring down the price of energy globally. A level for the cap will be chosen based on a number of technical factors. The G7 declared, "We will continue to stand with Ukraine for as long as it takes,"  Russia declared that it would stop selling oil to nations with price controls. "Companies that impose a price cap will not be among the recipients of Russian oil," according to Kremlin spokesman Dmitry Peskov.

The United Kingdom, United States, Canada, France, Germany, Italy, and Japan make up the G7 (Group of Seven). The club, which controls international trade and the financial system, is made up of the seven biggest "advanced" economies in the world. The oil price cap plan was "particularly devised," according to the finance ministers, to lower Russian earnings and its capacity to "support its war of aggression." In addition, they stated that "particularly in low and middle-income countries" they wished to minimize the negative economic effects of the conflict.

With the introduction of a cap on the price of Russian oil, nations who agree to the policy will only be allowed to buy Russian oil and petroleum products shipped by the sea that is being sold at or below the cap. The price of oil skyrocketed after Russia's invasion of Ukraine and has remained high, indicating that despite a decline in export volumes, Russia has increased its profits from fossil fuels.