G-7 agrees to historic $60 a barrel cap on Russian oil to limit war revenues

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G-7 agrees to historic $60 a barrel cap on Russian oil to limit war revenues
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The Group of Seven nations' much-anticipated price cap on Russian oil will be set at $60 per barrel, the Treasury Department announced Friday, days before the ambitious and novel strategy to punish Russia for the war in Ukraine takes effect.

Agreeing to a price was a final step in the monthslong process of negotiations between participants over the cap mechanism, which was developed to cut off Russian President Vladimir Putin's war funding from the petroleum trade without taking oil supply off the market at the risk of sending global markets into a tailspin. Russia is a top-three producer and exporter of oil globally.

"With the price cap, we're creating clear incentives for key actors in the global oil market — Russia, oil-importing countries, and market participants — to maintain the flow of Russian oil but at a discounted price," a senior administration official told reporters Friday. "G-7 services will be on offer to these countries going forward for the purchase of Russian seaborne oil as long as it's set below a certain price, helping these economies gain access to cheap, affordable energy going forward," the official said.

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