G7 agrees to explore cap on Russian oil price

  28 June 2022    Read: 297
  G7 agrees to explore cap on Russian oil price

The Group of Seven economic powers have agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price, they said on Tuesday. AzVision.az reports citing Reuters. 

"We invite all like-minded countries to consider joining us in our actions," the G7 leaders said in the communique.

The war in Ukraine and its dramatic economic fallout, in particular soaring food and energy inflation, has dominated this year's summit of the group of rich democracies at a castle resort in the Bavarian Alps.

The G7 is looking at price caps as a way to prevent Moscow profiting from its invasion of Ukraine, which has sharply raised energy prices, taking the sting out of Western efforts to reduce imports of Russian oil and gas.

Russian oil export revenues climbed in May even as volumes fell, the International Energy Agency said in its June monthly report.

G7 leaders have also agreed to push for a ban on imports of Russian gold as part of efforts to tighten the sanctions squeeze on Moscow, an EU official said on Tuesday.

The war, which has killed thousands and sent millions fleeing, entered its fifth month with no signs of abating.

Firefighters and soldiers searched on Tuesday for survivors in the rubble of a shopping mall in central Ukraine struck by a Russian missile.

G7 nations want to crank up pressure on Russia without stoking already soaring inflation that is causing strains at home and savaging developing nations.

There is a "real risk" of multiple famines this year as the Ukraine war has compounded the negative impact of climate crises and the COVID-19 pandemic on food security, United Nations chief Antonio Guterres said last week.

G7 leaders pledged $4.5 billion on Tuesday to fight global hunger, according to the communique.

The United States will provide over half of that sum, which would go to efforts to fight hunger in 47 countries and fund regional organisations, a senior U.S. official said.

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