ELMAU, Germany – A group of seven countries is moving closer to limiting the price that countries can pay for Russian oil, a senior U.S. official said.
The official said the leaders aim to further restrict Vladimir Putin’s cash flow, bring down gas pump prices and provide more stability to energy markets.
Leaders are said to be zero on the route Russian oil is sent. The U.S. official said G-7 leaders plan to direct their governments to take immediate action to design a price cap mechanism.
No additional details on the potential price limit and how it would work were immediately available.
The USA also announced on Monday that it would introduce sanctions that would make it difficult for Russia to change its military equipment.
According to the White House, G-7 leaders have also agreed on a new way to fund Ukrainian war efforts. The fact sheet on the new measures says nations will try to use the funds generated by the new tariffs on Russia to help Ukraine. As part of the announcement, the US says it will raise tariffs on about $ 2.3 billion worth of Russian goods.
Russia is on the verge of defaulting on its debt for the first time in more than a century with access to its foreign exchange reserves. The inflation rate in the country is also above 17 per cent.
- Ukraine comes into focus: The leaders will discuss ways to help their morning Ukraine cope with the Russian invasion. He will be addressed virtually by the President of Ukraine Volodymyr Zelensky.
- Big decisions: Zelensky’s speech will begin talks on additional heavy artillery shipments, and G-7 leaders will discuss price caps on Russian oil.
- Global Collaboration: To prevent Putin from selling oil to other nations at high prices, the G-7 countries need the cooperation of countries outside their alliance.
- Enter India: Germany is hosting G-7 leaders this year at a resort in the Bavarian Alps. Chancellor Olaf Schulz invited India and several other countries to participate.
- Why it’s important: India imports Russian oil Spike More recently, as Putin sells his stockpile to nations outside the economic bloc.
What’s going to happen
The group of seven leaders will talk on the second day of the Bavarian Summit about a leader who was once part of their exclusive economic club: Vladimir Putin.
Biden will try to talk to European nations to stop all imports of Russian oil and gas. World leaders are expected to discuss limiting oil and gas import prices to help fight inflation and further cut Putin’s financial resources.
In 2014, the G-7 nations excluded Russia from their first meeting Invasion of eastern Ukraine. Now that Putin’s army is pushing the country, world leaders are rushing to stop him.
Leaders will work on lunch (again) – this time discussing climate, energy and health initiatives. After the day they will sit down with the guest nations. The host of this year’s summit, Scholes of Germany, invited leaders from Argentina, India, Indonesia, Senegal and South Africa to attend.
Want to know more? Here’s what you missed
Biden and the G-7 leaders announced a ban on new imports of Russian gold on the first day of their summit. They also launched the Global Infrastructure Initiative.
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