Group of Seven (G7)

Recently, the group of seven advanced economies (G7) agreed to implement a price cap on oil exports from Russia.

• The move is aimed at cutting off a source of financing for Moscow as its invasion of Ukraine continues.

Implications of Price Cap

• The introduction of a price cap on Russian oil means countries that sign up to the policy will only be permitted to purchase Russian oil and petroleum products transported via sea that are sold at or below the price cap.
• The price cap will help maintain supplies to global energy markets by keeping Russian oil flowing at lower prices ....