G7 leaders agree to explore the price cap

G7 leaders agree to explore the price cap


The group of seven economic powers agreed to explore the imposition of a ban on the transportation of Russian oil that was sold above a certain price, they said on Tuesday.

“We invite all countries with the same views to consider joining us in our actions,” G7 leaders said in a statement.

The war in Ukraine and its dramatic economic consequences, especially rising food and energy inflation, dominated this year’s summit of the resort-rich group of democracies, a castle in the Bavarian Alps.
The G7 is looking at price caps as a way to prevent Moscow from taking advantage of the invasion of Ukraine, which has drastically raised energy prices, eliminating Western efforts to reduce Russian oil and gas imports.

Revenues from Russian oil exports rose in May, although volumes fell, the International Energy Agency said in its June monthly report.

A cap on how much other countries pay Russia for oil would reduce “the resources it has to wage war and, secondly, increase the stability and security of supply in global oil markets,” a senior US official said. .
G7 leaders also agreed to push for a ban on Russian gold imports as part of efforts to tighten sanctions against Moscow, an EU official said on Tuesday.

The war, which killed thousands and caused millions to flee, entered its fifth month with no signs of abating.

Firefighters and soldiers searched for survivors on Tuesday in the rubble of a mall in central Ukraine, hit by a Russian rocket.

COMBATING FOOD INSECURITY

The G7 nations want to increase pressure on Russia without fueling already rising inflation, which is causing domestic tensions and wildly developing countries.

There is a “real risk” of multiple famines this year as the war in Ukraine has exacerbated the negative impact of climate crises and the COVID-19 pandemic on food security, UN chief Antonio Guterres said last week.

Reuters photo source

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

The United States will provide more than half of that amount, which would be used to fight hunger in 47 countries and fund regional organizations, a senior US official said.

The G7 is trying to mobilize emerging countries, many with close ties to Russia, to oppose Putin’s invasion of Ukraine and has invited five large middle- and low-income democracies to the summit to persuade them.

Some are more concerned about the impact of rising food prices at home, blaming Western sanctions, not Russia’s invasion of one of the world’s largest grain producers and the blockade of its ports.

Asked if G7 leaders had found a way to let Ukraine export its grain, British Prime Minister Boris Johnson said on Tuesday: “We are working on this, we are all working on this.”

G7 leaders also pledged on Tuesday to set up an international “Climate Club” to establish cooperation on climate change and made commitments on decarbonising industrial sectors.