Leading industrial nations announced Tuesday that they would pursue placing a price cap on Russian oil, a move that U.S. officials hope will help limit Russia’s crude oil export revenue from around the world.
Treasury Secretary Janet Yellen praised the decision by the Group of Seven to pursue a price cap in a statement Tuesday, which she said represents a “significant step” in advancing countries’ shared goals of sharply reducing Russia’s profits while also stabilizing global energy prices.
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“Following the leaders’ direction today, the Treasury Department will work expeditiously with our counterparts in G-7 countries, and other global allies and partners, to advance this effort,” Yellen said.
“By working together to limit the price of Russian oil, we will further strengthen the existing sanctions imposed by the G-7 and our partners to make sure that Putin will not be able to profit from the higher global energy costs that have resulted from his invasion,” she said.
To implement the price cap, leaders would target insurers and other services that enable the transportation and trade of Russian seaborne crude, according to a communique published by leaders following the summit.
White House officials said Monday they were working out the terms of the price cap deal, with national security adviser Jake Sullivan telling reporters that questions remain about how the caps will be implemented across various countries.
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“It is a new kind of concept to deal with a particularly novel challenge, which is how to effectively deal with a country that’s selling millions of barrels of oil a day,” he said.
