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G7 agrees to explore Russian oil price ceiling to deplete Moscow’s war chest ‘Only way out’ | United Kingdom | New UK News

The war in Ukraine and its dramatic economic fallout, particularly soaring food and fuel inflation, dominated this year’s wealthy democracies group summit at a resort town in the Bavarian Alps. An oil price cap would increase existing Western pressure on Russia from sanctions, which German Chancellor Olaf Scholz said would remain until Russian President Vladimir Putin accepts failure in Ukraine.

Mr Scholz said at the end of the press conference: “There is only one way out: that Putin accepts that his plans in Ukraine will not succeed”.

The G7 sees price caps as a way to prevent Moscow from profiting from its invasion of Ukraine, which has sharply raised energy prices, stifling Western efforts to curb imports of Russian oil and gas.

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

The G7 was also exploring the possibility of a cap on petrol prices, a move particularly pushed by Italy, G7 officials said. France meanwhile called for a price cap on all energy sales.

The idea behind the cap is to tie financial services, insurance and oil cargo transportation to a price cap.

A shipper or importer could only obtain them if he agreed to set a maximum price for Russian oil.

The G7 leaders said in their statement: “We invite all like-minded countries to consider joining us in our actions.”

However, experts warn the plan could backfire.

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Firefighters and the military searched Tuesday for survivors in the rubble of a shopping center in central Ukraine hit by a Russian missile.

G7 leaders, who are now heading to Madrid for a summit of the Western NATO alliance, condemned the attack as a war crime.

They said, “Putin and those responsible will be held accountable.”

The G7 leaders urged China in their statement to uphold the principle of peaceful settlement of disputes by urging Russia to halt its invasion of Ukraine and abandon its “extensive maritime claims” in the South China Sea.

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This notice was published: 2022-06-29 05:15:27

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