G7 finance minister discusses proposal to impose a ceiling on Russian oil prices
Imposing a cap on Russian oil prices is the most effective way to reduce Russian revenues, and doing so would not only reduce Russian oil revenues, but also cool global energy prices.
The G7 leaders also considered other options, including a ban on Russian oil shipments.
U.S. Treasury Secretary Janet Yellen and new U.K. Treasury Secretary Nadhim Zahawi on Aug. 31 discussed plans to impose a price cap.
Yellen said that in a time when conflict has kept energy prices high globally, the price ceiling is one of the most effective tools for controlling inflation, as it ensures a steady flow of oil into global markets at low prices.
Zahawi, meanwhile, expressed confidence that Western allies can enforce price caps to reduce Russian revenues and maintain oil price stability.
The finance ministers of the G7 will discuss the administration of US President Joe Biden on a ceiling on Russian oil prices at a meeting on September 2.