G-7 finance ministers want to introduce price caps on Russian oil

The seven leading industrial nations (G7) want to introduce a price cap for Russian oil. In the final document on the deliberations of the G-7 finance ministers on Friday, however, no exact amount is given, nor is there a timetable. The measure is intended to limit Russia's revenues after the attack on Ukraine, but at the same time to keep oil flowing to western countries.

There is a common political will to finalize and introduce such an instrument, according to the G7 declaration, which the Federal Ministry of Finance disseminated. The G 7 - consisting of Germany, France, Italy, Great Britain, the USA, Canada and Japan - only want to allow services related to Russian oil deliveries if a certain price level for the oil is not exceeded. Ship insurance plays an important role here.

However, even G-7 representatives concede that ideally, important oil buyers such as China and India should be on board. However, this is not considered overly likely. The G-7 statement states that the aim is for a "broad coalition of countries" to join the effort. Individual states are not named. The measure could help poorer countries in particular, which are suffering particularly badly from the sharp rise in energy costs since the outbreak of war.

The introduction should now be worked on at full speed. However, the G-7 paper points out that this requires unanimity in the EU, which consists of 27 countries. The “entire coalition” is to decide on the exact height of the upper limit at a later date. A review and possible adjustment is possible at any time.

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