Western allies, including the g7 group of industrialised nations (the us, canada, the uk, france, germany, italy, japan and the eu), approved a cap on prices for russia’s oil exports on friday. the cap is aimed at stopping countries paying more than $60 (â£48) for a barrel of seaborne russian crude oil and is intended to limit moscow’s ability to finance the war in ukraine. the white house described the deal as “welcome news”, while uk chancellor jeremy hunt said the uk would not waver in its support for ukraine.
Cap is due to come into force on monday, 5 december, and will be enforced by an eu-wide ban on russian crude oil imported by sea. countries which sign up to the g7-led policy will only be permitted 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.
Agreement of a price cap is an attempt to hit moscow’s ability to finance the war in ukraine and is part of a wider effort to deny insurance to tankers delivering russian oil to countries that do not stick to the price cap. russia has responded to the measure by selling its oil to other markets such as india and china, which are currently the largest single buyers of russian crude oil. ukraine has called for the cap to be halved and has said that russia will pay and be responsible for all its crimes.