G7 raises sanctions against Russia and uses price cap on the country’s oil – News

The Group of the Seven Large Economies of the World, this Tuesday (28) aims to boost the economy with a new set of integrated actions. Pressure on Russia due to Ukraine war And a senior U.S. official said Monday that it would finalize plans for a price ceiling for Russian oil.

The announcement comes after the White House’s claim that Russia has not repaid its foreign sovereign bonds for the first time in decades – a claim rejected by Moscow – and after a virtual conversation with G7 leaders at the southern alpine resort of Ukrainian President Volodymyr Zhelensky. Germany.

According to a European official, Zelensky sought extensive military, economic and diplomatic support from G7 leaders.

The G7 countries, which produce almost half of the world’s economic output, want to increase pressure on Russia without triggering already rising inflation, which is causing internal tensions and wreaking havoc on many countries.

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

“The dual goals of the G7 leaders are to target Putin’s revenues primarily through energy, but also to reduce leakage and impact on their countries’ economies and other parts of the world,” the US official said. Annual G7 Summit.

The White House said in a statement that G7 leaders would “establish an unprecedented and long-term security commitment to provide Ukraine with financial, humanitarian, military and diplomatic support as needed, including timely delivery of modern weapons.” .

Western sanctions have hit Russia’s economy hard, and new measures are aimed at further eroding the Kremlin’s oil revenues. The U.S. official said the G7 countries would work with others, such as India, to control the revenues that Putin could continue to generate.

On the second day of the summit, Indian Prime Minister Narendra Modi was one of five national leaders invited to join the G7 for talks on climate change, energy, health, food security and gender equality.

“This is a mechanism that benefits third countries more than Europe,” an EU official said. “These countries are asking questions about the possibilities, but in principle low energy payments are a very popular topic.”

According to a US official, G7 leaders will work with countries around the world and stakeholders, including the private sector, to work with governments to actively implement Russian price caps.

Copyright © Thompson Reuters.