Amid Ukraine war, US says G7’s price cap on Russian oil will hit Vladimir Putin immediately

Accepted by Western partners on Friday, the ban prevents countries from paying more than $60 (£48) per barrel for Russian crude oil sent over the sea. When the bill takes effect on Monday, it will heighten the pressure from the West on Russia over the invasion.

According to Ukrainian arguments, the Western limit should be reduced by half. Russian officials have indicated they would no longer provide supplies to countries implementing the ban.

The G7 industrialized nations—the US, Canada, the UK, France, Germany, Italy, Japan, and the EU—proposed the price ceiling in September to limit Moscow's ability to fund the conflict in Ukraine.


The joint G7, the EU, and Australia statement said the decision was taken to "prevent Russia from benefiting from its campaign of aggression against Ukraine."



According to US Treasury Secretary Janet Yellen, the price ceiling would avoid interruptions in global supply that may increase gasoline costs worldwide while also limiting the funds.

The price restriction "would instantly cut into Putin's most significant source of income with Russia's economy already declining and its budget more stretched thin," she said in a statement.

Kremlin spokesperson Dmitry Peskov was cited by Russian media as suggesting the country will "not accept" the price cap.

The price cap is meant to complement that and have an effect on oil shipments across the world. The countries adhering to the G7's policy may only buy oil and petroleum products at prices at or below the set ceiling.

FAQs:

1. What is the purpose of G7 countries?
   They serve as a forum to coordinate global policy.
2. Which is a richer country, America or Canada?
   America is the richest, while Canada ranks in ninth place.