Putting a price cap on Russian oil on the G-7 negotiators agenda

Group of Seven negotiators agreed that discussions on a potential price cap on Russian oil had progressed enough to send the issue to leaders to discuss at a summit starting in Germany.

The negotiators known as sherpas held what one official described as ‘intense’ talks on the matter in the Bavarian Alps ahead of the summit.

The negotiators would fix a price mechanism that would set a maximum limit on imports of oil from Russia, which would be imposed unilaterally by each participating country and prevent Russia selling at a higher price.

While there are many issues still to be ironed out, they reached an understanding that leaders should have a formal discussion about a price cap.

But with key details still being worked on, another G-7 official said it remained unclear whether the leaders would be in a position to back the concept.

However, G-7 states are keen to find a way to limit the Kremlin’s energy revenue while modifying the impact on their own economies from steps to quickly control their dependance on oil and gas from Russia.