G7 Announces Plans for Global Price Cap on Russian Oil Products

The Group of Seven nations intend to implement a price cap on Russian-origin crude oil and petroleum products, according to a joint statement released today by the G7 Finance Ministers.

The statement includes plans to implement a "comprehensive prohibition" of services which enable maritime transportation of Russian-origin crude oil and petroleum products. Services would only be rendered if Russian products are purchased at or below a price determined by a "broad coalition of countries." The cap is designed to reduce Russian revenues and the country's ability to fund its ongoing war in Ukraine while limiting the impact of the war on global energy prices, particularly for low and middle-income countries, said the statement. This measure is designed to "build on and amplify" existing sanctions.

Treasury Secretary, Janet Yellen issued a related statement, saying that the price cap would help fight inflation and protect workers and businesses in the U.S. OFAC anticipates that it will publish preliminary guidance on implementation later this month, it said in a notice.