G7 aims to hurt Russia by imposing a price cap on oil exports

G7 aims to hurt Russia by imposing a price cap on oil exports

The world’s leaders of G7 countries talked about how to tackle soaring inflation while maintaining growth. They also discussed building pressure on the Russian economy with a price cap on its oil exports.

At the first session on the world economy at the G7 summit, the president of the European Commission, Ursula Von Der Leyen, said they discussed how to give strength to the world economy.

Ursula Von Der Leyen served in the German federal government from 2005 to 2019. She has been performing her duties as the president of the European Commission since December 2019.

She said during the meeting of G7 countries that we have to maintain growth and tackle inflation at the same time. She emphasized supporting environmental and social sustainability, while maintaining financial and fiscal stability, and making a powerful supply chain flexible.

During the discussion, she said energy prices are considered the main drivers of inflation. She also said Britain tried to reduce the effects through supply diversification, energy savings, and renewables.

To solve this problem and reduce Russia’s dependence, a measure that the G7 countries are discussing is a price limit on Russian oil.

Oil prices have climbed since the start of the Russian war in Ukraine, reaching multi-year highs that brought the Brent price to $ 125.19.

All of the G7 countries hope that by setting a price cap on Russian oil, Moscow’s revenues will be curtailed while at the same time there will be more oil supply to reach the world markets.

The United States Treasury Secretary Janet Yellen had previously said a price cap on Russian oil would be “an important way to prevent indirect effects in low-income and developing countries that are struggling with high food costs and energy.”

The US proposed oil consumers set a price cap on Russian oil.

A France-based news agency said on Sunday that Paris also warned oil producers to cap prices and backed the US proposal for a maximum oil price.

The G7 countries also discussed banning Russian gold imports and now considering a price cap on Russian oil.