G-7 Allies Weigh Tightening Russian Oil Price Cap

(Bloomberg) —

The Group of Seven is considering collectively tightening or adapting an oil price cap on Russian petroleum in an effort to reduce Moscow’s revenues as the war in Ukraine continues.

A draft statement seen by Bloomberg News shows that G-7 nations could task their finance ministers to collectively redraw the price limit — currently set at $60 a barrel for crude oil — which was introduced to curb the Kremlin’s access to petrodollars. The move would be part of efforts to raise costs of the war in Ukraine for Russia to “incentivize it to negotiate a meaningful peace.”

It’s not clear at this stage how supportive all G-7 nations are of the document in its current guise, and it will likely get revised as diplomats continue to negotiate the text. The so-called zero-draft also mentions “troops and resources on the ground, coupled with robust international oversight to monitor agreed-upon lines.” 

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