G7 decides to bite the hand that feeds Europe by capping oil prices

G7 finance ministers have agreed to cap prices on Russian oil, Sky News journalist Tamara Cohen tweeted.

"Group of Seven finance ministers have agreed to impose a price cap on Russian oil,” Cohen tweeted. 

She also quoted UK Treasury Secretary Nadhim Zahavi:

"We will limit [Russian President Vladimir] Putin's ability to finance his … [special operation] through oil exports by banning services such as insurance and providing finance to ships carrying Russian oil above the agreed ceiling." .

At the same time, the G7 countries are going to develop a special mitigation mechanism that would allow most vulnerable and needy countries to get access to Russian oil.

Earlier, Russian Deputy Prime Minister Alexander Novak and presidential spokesman Dmitry Peskov said that Russia would not cooperate with the countries that cap prices on Russian oil. Russia will cut oil supplies to those countries and find other sales markets instead, he added.

In turn, the head of the European Commission, Ursula von der Leyen, said on September 2 that the European Union was working on a proposal to cap prices on Russian gas.