G7 to explore cap on Russian oil price

This year’s summit, which is held at a castle resort in the Bavarian Alps, has been dominated by the economic fallout of Russia’s invasion of Ukraine – in particular, food and energy inflation.

The G7 is looking at the price cap as a way to prevent Moscow profiting from its invasion of Ukraine, which has sharply raised energy prices, taking the sting out of western efforts to reduce imports of Russian oil and gas.

The International Energy Agency said Russian oil export revenues climbed in May, even as volumes fell.  

The G7 are consequently looking at imposing a ceiling on how much other countries pay Russia for oil, with a senior US administration official saying the move would limit Putin’s “resources that he has to wage war and secondly increase stability and the security of supply in global oil markets”, according to Reuters.

The G7 has also agreed to push for a ban on imports of Russian gold, an EU official said.