G7: Price cap deal on Russian oil agreed

Finance ministers from the G7 announced an agreement Friday to impose a cap on the price importers pay for Russian oil, in a bid to shrink a key source of revenue the Kremlin uses to finance its war in Ukraine.

“We seek 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 group said in a statement.

The deal still faces obstacles before it can be enforced, marks a win for US Treasury Secretary Janet Yellen, a key advocate of the proposal who has helped build global support for the idea. Yellen said the price cap would prove a powerful tool to fight inflation and deliver a major blow for Russia’s finances.

By committing to finalize and implement a price cap on Russian oil, today the G-7 took a critical step forward in achieving our dual goals of putting downward pressure on global energy prices while denying President Vladimir Putin revenue to fund his brutal war in Ukraine,” she said in a statement.