Ukraine war: G-7 prepares to impose price controls on Russian oil

Elmau, dt

The G-7, the world's richest democracy, has vowed to support Ukraine until the war breaks out and pledges tougher sanctions to destroy the Russian economy. In a joint statement at the end of the three-day G-7 summit on Tuesday, the G-7 countries set out to take concrete steps to limit Russia's oil and gold sales revenue. However, the G7 countries are hesitant about how to control the price of Russian oil.

Russia's invasion of Ukraine has created an atmosphere of chaos in the world. Especially on the economic front, as both countries are major producers of commodities and fuels, the war is taking a heavy toll on the world economy. Along with crude oil, natural gas prices have skyrocketed since February due to Russia's encroachment, which has also pushed up inflation.

In a bid to impose tougher sanctions on Russia at the G-7 summit, top G-7 leaders have now approved a proposal to impose top price limits on Russia's crude oil and gas. The G-7 countries are preparing for price capping on Russian crude oil. In this way, the G-7 countries intend to destroy Russia's economy. Crude oil and gas and gold are Russia's main sources of income. Western countries have previously banned Russian crude. In addition, they have now agreed to ban the import of Russian gold. Apart from this, the G-7 countries also agreed to help the poor countries by alleviating the food shortage created in the world due to the obstacles in the shipment of Ukraine's grain through the Black Sea.

However, Western countries are still at a loss as to how to impose price controls on Russian oil. For that he has to involve countries including India in his process of buying Russian crude oil. In addition, rising global inflation due to price controls on Russian oil is also a headache for Western countries.

The French president has spoken out against inflation, advocating for such price caps not only on Russia but also on other crude exporters. He said that in order to curb inflation and economic turmoil, Russia as well as countries like Saudi Arabia and Nigeria, which are part of the OPEC cartel, have been asked to impose price capping.

Although everyone agreed on a proposal to impose price controls on Russia, the French president was reluctant to impose sanctions on all countries. Countries, including Britain, were of the opinion that if this price cap were to apply to Saudi or other OPEC non-OPEC countries, it would create a man-made shortage and the move to curb inflation would lead to more inflation.