The Group of Seven affluent nations decided on Friday to adopt a price-capping system on Russian oil exports, with the goal of limiting the Kremlin’s ability to fund its conflict in Ukraine and better-protecting consumers in the face of rising energy prices. ‘We need to do all we can to address the energy problem, says the EU’s climate leader.
Prior to the statement, Moscow warned that it will stop exporting oil to nations that set price limitations on Russian energy exports and that limiting the country’s petroleum would significantly destabilize the global oil market. In June, the G-7 decided to investigate the possibility of placing an embargo on Russian oil supplies over a particular price. The G-7 oil price ceiling comes as Western economic forces aim to deplete Russia’s military budget.
According to International Energy Agency data, Russian oil shipments decreased by 250,000 barrels per day month on month in June to 7.4 million barrels per day, the lowest level since August of last year. According to the IEA, increased oil prices helped Russia’s crude export profits exceed $20 billion, a 40% increase over last year’s average.