G7 price cap on Russian oil comes into force
December 5, 2022 - The Group of Seven price cap on Russian seaborne oil came into force on Monday as the West aims to weaken Moscow’s ability to finance its war in Ukraine.
The price cap, to be enforced by the G7 nations, the European Union and Australia, comes on top of the EU’s embargo on imports of Russian crude by sea and similar pledges by the United States, Canada, Japan and Britain, according to Reuters.
It allows Russian oil to be shipped to third-party countries using G7 and EU tankers, insurance companies and credit institutions, only if the cargo is bought at or below the price cap. As the world’s key shipping and insurance firms are based in G7 countries, the cap could make it difficult for Moscow to sell its oil for a higher price, Reuters said.