G7 plans to revise Russian oil price cap

G7 countries are considering a review of the price cap on Russian oil, currently set at $60 per barrel, in an effort to reduce Moscow's revenues and increase costs associated with its ongoing war in Ukraine. A draft statement, expected to be published on February 24, suggests that G7 finance ministers may adjust the price limit to further restrict Russia's access to oil dollars. This move aims to encourage Russia to engage in negotiations for a comprehensive peace, with Ukrainian President Volodymyr Zelensky expressing readiness for talks but deeming Russia's conditions excessive. The discussions around the price cap reflect ongoing uncertainty regarding the level of support among G7 nations for the proposed changes. Previous sanctions have already disrupted Russian oil exports significantly, especially impacting shipments to major buyers like India and China. Additionally, Ukraine's proposal to lower the price cap to $30 per barrel highlights the urgency of limiting Russia's economic capabilities to finance the conflict.