G7 Finance Ministers Advance Plan for Russian Oil Price Cap

The finance ministers of the Group of Seven major industrialised countries decided on Friday to proceed with an unprecedented plan to cap the price of oil sold by Russia on international markets in order to reduce the amount of money that Moscow can use to fuel the conflict in Ukraine.

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In addition to the additional inconvenience brought on by the insurance and financing restrictions, U.S. officials have expressed fear that a complete embargo on Russian oil sales to the EU may push the world economy into recession.

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U.S. Treasury Secretary Janet Yellen is pushing for the price cap, which would make oil traded at or below the cap exempt from the prohibition.

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The EU proposal forbids EU firms from funding or insuring Russian oil shipments.

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The finance ministers made it clear Friday that Russian President Vladimir Putin's decision to invade Ukraine is the reason they are seeking to choke off Moscow's supply of oil revenues.

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