G7 seeks to curb Russian oil income

The Group of Seven rich nations debating price cap

The Group of Seven rich nations are debating a global price cap for Russian oil that would curb Moscow’s energy revenues and potentially limit its ability to fund its invasion of Ukraine. Higher crude oil and fuel prices allowed Russian revenues to climb in May despite its export volumes slipping due to sanctions, the International Energy Agency said in its June monthly report.

Russian oil export revenues are estimated to have increased by $1.7 billion in May to about $20 billion. The G7 nations have agreed to ban Russian oil imports, although some over time. Europe was still the destination for 43% of Russian oil and fuel last month. China’s imports of Russian oil and fuel have risen, while India has overtaken Germany’s place as the number two destination.

The G7 would ideally like to end Russian oil sales, but accepts that increased output from producers would not make up the shortfall.


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