G7 seeks 'broad coalition' to cap Russian oil prices

G7 finance ministers on Friday reiterated their intention to gather the necessary support to impose a cap on the price of Russian oil, according to a joint document approved after a virtual conference.

"We seek a broad coalition to maximise effectiveness," says the document published on the website of the German finance ministry, which holds the rotating presidency of the group of seven most industrialised countries.

This is intended to "reduce Russian revenues from oil sales", which is a major source of funding for the war of invasion in Ukraine, while containing the rise in world energy prices.

The G7 reiterates its solidarity with Ukraine and condemnation of Russian aggression and notes that "the economic costs of the war and the resulting price increases are disproportionately felt by vulnerable groups in all economies and especially in those countries already facing food insecurities and fiscal challenges".

Ministers are also convinced that the effect of the sanctions already imposed on Russia will increase over time and assure that they will continue to enforce them.

Furthermore, they recall that at the Elmau (southern Germany) summit last June the G7 leaders stressed that they would strive to prevent Russia from benefiting from its war of aggression and in this context they propose that the transport of Russian oil and its derivatives should only be allowed worldwide if the products are sold below a price ceiling.

This should be determined by the broad coalition of countries that adhere to and implement the price cap, say the G7 members (US, Canada, France, Italy, UK, Japan and Germany).

"The price cap will be specifically designed to reduce Russian revenues and Russia's ability to finance its war of aggression while limiting the impact of the war on global energy prices, particularly for low- and middle-income countries," the document says.

Furthermore, ministers welcome the EU's decision to explore with international partners ways to curb rising energy prices and even consider the possibility of temporary import price caps.

The document admits that the EU needs the consensus of all 27 member states and says that the aim is to coordinate G7 measures with the sixth European sanctions package.