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The G7 ponders capping oil prices to deny Russia revenues. How would it work?

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Leaders of the Group of 7 nations meeting in Germany, seeking a new way to throttle Russia’s finances while limiting the harm to Western economies, are discussing imposing a ceiling on the price paid for Russian oil. Details of the plan are still being discussed, but the idea is to limit how much Russia can earn from the oil it sells while still keeping markets well supplied.A price cap is being considered because, despite sanctions imposed by the West after Russia’s invasion of Ukraine, Moscow is still earning substantial revenue from oil.While Russian output has declined around 8 percent since the war began, prices have risen, generating a steady of supply of cash to support the government. Crimping that revenue stream is a goal at …

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