US pushes back on lowering price cap for Russian oil – Bloomberg
Photo: Donald Trump, President of the United States (Getty Images)
The US does not want to lower the price cap on Russian oil within the framework of the G7, Bloomberg.
According to Bloomberg sources, the US is not backing down from its position on lowering the price ceiling for Russian oil. This dims Europe's hopes of pushing the decision through at the G7 summit in Canada.
The sources specify that the final decision on reducing the price cap lies with US President Donald Trump. However, there has been no shift in Washington's stance since it was laid out at the G7 finance ministers' meeting earlier this year.
Price cap reduction
The European Union and the United Kingdom have been pushing to lower the cap from $60 to $45 per barrel to curb Russia's ability to fund its war.
The EU has already included this measure in its latest sanctions package against Moscow over the invasion of Ukraine. However, the package has only been proposed by the European Commission and has not yet come into force.
It’s also worth noting that amid the recent escalation between Israel and Iran, oil prices have surged to around $73 per barrel.
According to the Institute for the Study of War (ISW), this could work in Russia's favor in its military efforts against Ukraine.
