On June 25, local time, a German government official said before the start of the three-day G7 annual summit that the G7 was considering discussing a cap on Russian oil prices . It is reported that it was a “very constructive” discussion.
The Group of Seven nations are in wide-ranging discussions on how to further increase pressure on the Kremlin without exacerbating global inflationary pressures. This proposal is one of them.
War in Ukraine, energy and food shortages and a worsening outlook for the global economy are expected to be the main topics at this year’s summit in Germany’s Elmau Palace . The United States, Canada and the United Kingdom have banned oil imports from Russia , while EU leaders have agreed to a blanket embargo by the end of 2022 as part of sanctions imposed in response to Russia’s invasion of Ukraine.
However, with energy prices rising, Western countries fear that the embargo will actually have no impact on Russia’s war funding. The reason is that even if exports fall, Russia can earn more from exports.