Group of Seven nations and Australia have joined the European Union in adopting a price cap of $60 a barrel for Russian oil.
The move is part of Western efforts to reorganize the global oil market to prevent rising prices – and to leave it up to Russian President Vladimir Putin to finance the war in Ukraine.
US Treasury Secretary Janet Yellen said in a statement that the deal would help limit “Putin’s main source of revenue for the illegal war in Ukraine, while maintaining the stability of global energy supplies.”
The G7 includes the UK as well as Canada, France, Germany, Italy, Japan and the US.
A G7 statement released on Friday said the group is “prepared to review and adjust the maximum price as appropriate,” taking into account market developments and potential impacts on coalition members and low- and middle-income countries. .
She said that every dollar that was reduced captured the minimum figures of two billion dollars for Russia.
“A price between $30-40 is what would hurt Russia significantly. However, this is the best compromise we can reach,” he asserted.