The Group of Seven economic powers agreed to a broad agreement to seek ways to impose a price cap on Russian oil.
The advanced economy nations agreed to explore imposing a ban on transporting Russian oil that has been sold above a certain price. The effort is aimed at depleting Russia’s war chest.
Russia’s invasion of Ukraine and the dramatic economic fallout dominated the G7 summit this year, especially soaring food and energy inflation.
The agreement overcame interventions from France that had sought a worldwide scheme.
The overarching consensus seeks options to impose the price limit on Moscow’s exports. Now the G7 members will have to do further work not he technical options of how to deliver this new plan.
German Chancellor Olaf Scholz said the project was very ambitious and demanding, and that there was still a lot of work to be done.
The agreement was reached in the early hours of the third day of the summit at a castle in the Bavarian Alps.
It came amid growing frustration among Western countries that embargoes on Russian oil have had the counterproductive effect of driving up the global crude price. This has meant that Moscow has actually earned more money for its war.
Scholz insisted Western sanctions would stay until Russian President Vladimir Putin accepted failure in Ukraine.
“There is only one way out: for Putin to accept that his plans in Ukraine will not succeed,” Scholz said.
The U.S. had initially pushed for a price cap that could be enforced by lifting sanctions on insurance for the cargo ships that transport Russian oil in return for a price deal.
The current agreed upon project is to tie financial services, insurance and the shipping of oil cargoes to a price ceiling. A shipper or an importer could only get these if they committed to a set maximum price for Russian oil.