Us, g7 group of industrialised nations, european union, australia, ukraine, and russia were all involved in the decision to impose a cap on the price of russian oil. the measure was approved on friday and is set to come into force on monday. it is intended to restrict russia’s revenues for the “illegal war in ukraine” and to hit moscow’s ability to finance the war.
Decision was taken in september by the g7 group of industrialised nations and was approved by western allies on friday. countries which sign up to the policy will only be allowed to purchase oil and petroleum products transported via sea that are sold at or below the price cap. the us has already banned russian crude oil, while the uk plans to phase it out by the end of the year.
Cap was put forward in order to prevent russia from profiting from its war of aggression against ukraine. countries that do not stick to the price cap will be denied insurance to tankers delivering russian oil. the us treasury secretary janet yellen said the price cap would also further constrain russian president vladimir putin’s finances and “limit the revenues he’s using to fund his brutal invasion”. russia has responded by saying it will not supply to countries enforcing the cap.