G7 countries agree to impose price cap on Russian oil

G7 finance ministers announced that they have agreed to implement a price cap on Russian oil in an effort to inhibit Russia’s ability to finance its war against Ukraine. The level at which the prices will be capped has not yet been determined; the bloc’s official statement said the ceiling will be “set at a level based on a range of technical inputs.”

Russian Presidential Press Secretary Dmitry Peskov responded to the news, saying, “the adoption of this decision will cause oil markets to destabilize significantly. [...] We’re not going to interact on these kinds of non-market principles. The oil will go to other countries.”

According to the G7 statement, the cap is specifically designed to “limit the impact of Russia's war on global energy prices, particularly for low and middle-income countries” while still shrinking the Kremlin's war fund.

European Commission head Ursula von der Leyen called for the EU to impose a similar price cap on Russian pipeline gas on Friday. Russian Security Council Deputy Chairman Dmitry Medvedev responded on Telegram: “‘The time has come for the EU to impose a price cap on pipeline gas from Russia,’ said Auntie what’s-her-name von der Leyen. It will be just like with oil. Europe simply won’t have Russian gas.”