G7 studies how to limit the price of Russian oil

The United States, Canada and the United Kingdom have already banned imports of Russian oil, while the European Union has agreed to an embargo that will take effect at the end of 2022 as part of sanctions imposed on the Kremlin for its invasion of Ukraine.

However, with energy prices on the rise, the West fears that these embargoes will not put a dent in Russia’s coffers, at a time when the country earns more from exports even if volumes fall.

A price cap could resolve this dilemma, while avoiding further restricting oil supply and fueling inflation, representatives say. However, for this to work, the participation of large importers such as India and China is required.

“We are on the right track to reach an agreement,” the source said.

The official said the G7 is also discussing the need to combine ambitious climate goals with the need for some countries to explore new gas fields, at a time when Europe is rushing to divest itself of Russian gas imports.