Finance
According to Politico, the Group of Seven (G7) leading Western economies reached an agreement on Tuesday to set a price cap on Russian oil exports, citing unnamed officials.
The agreement’s specifics have not been disclosed. According to reports, the US proposed lifting sanctions on insurance for ships transporting Russian oil only if countries agreed to buy it at a predetermined maximum price, thereby enforcing a price cap, as reported by RT.
G7 members also rejected French President Emmanuel Macron’s proposal on Monday for a global price cap on oil. The US and Germany reportedly waived the proposal, and France agreed to withdraw it.
The agreement comes as Western countries struggle to deal with rising energy prices and inflation caused by sanctions and embargoes imposed on Russian oil.
While the sanctions are intended to deplete the “Russian war chest,” which is allegedly used to fund the ongoing military operation in Ukraine, Moscow has earned more money from energy exports than before the sanctions due to higher prices, according to RT.
The idea of a price cap was first floated by US Treasury Secretary Janet Yellen earlier this year, and it has since been adopted by the G7, which has reportedly been holding “constructive” talks on the subject for the past three days at its annual summit in Germany.
Source:OCN
