G7 will increase sanctions against Russia and apply price cap on the country’s oil – News

The group of the seven largest economies in the world will commit, this Tuesday (28), with a new package of coordinated actions aimed at increasing the pressure on Russia because of the war in Ukraine and will finalize plans for a price ceiling for Russian oil, a senior US official said on Monday.

The announcement comes as the White House claims that Russia has defaulted on its foreign sovereign bonds for the first time in decades — a claim Moscow has rejected — and after Ukrainian President Volodmyr Zelensky held a virtual conversation with G7 leaders meeting in an alpine resort in southern Germany.

Zelensky asked G7 leaders for a wide range of military, economic and diplomatic support, according to a European official.

The G7 nations, which generate nearly half of the world’s economic output, want to increase pressure on Russia without fueling the already soaring inflation that is causing internal tensions and ravaging several countries.

The price cap could hit Russian President Vladimir Putin’s war reserves while reducing the value of energy.

“The dual goals of the G7 leaders have been to directly target Putin’s revenues, primarily through energy, but also to minimize the spillover and impact on their countries’ economies and the rest of the world,” the US official said on the sidelines. of the annual G7 summit.

G7 leaders will also establish an “unprecedented and long-term security commitment to provide Ukraine with financial, humanitarian, military and diplomatic support for as long as needed”, which includes the timely provision of modern weapons, the White House said. in a note.

Western sanctions have hit Russia’s economy hard, and the new measures aim to further deprive the Kremlin of oil revenues. G7 countries will work with others — such as India — to limit the revenue Putin can continue to generate, the US official said.

Indian Prime Minister Narendra Modi is one of five invited nation leaders joining the G7 for talks on climate change, energy, health, food security and gender equality on the second day of the summit.

“It’s a mechanism that can benefit more third countries than Europe,” said an EU official. “These countries are asking questions about feasibility, but in principle paying less for energy is a very popular topic.”

G7 leaders will task their governments to work intensively on measures to implement the Russian price cap, working with countries around the world and stakeholders, including the private sector, according to the US official.

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