Summit in the shadow of war: G7 plan international oil price brake

Western sanctions are having an effect and Russia is exporting less oil.

Summit in the shadow of war: G7 plan international oil price brake

Western sanctions are having an effect and Russia is exporting less oil. However, due to the rise in prices, Moscow's revenues are still increasing. At the same time, the economy and consumers are suffering worldwide. The G7 countries want to change that with an international price cap.

Shortly before the official start of the G7 meeting in Elmau, Bavaria, the German hosts see the discussion about an international upper price limit for Russian oil as going well. According to government circles, the G7 group of economically strong democracies is talking intensively and constructively about how such a price cap could work. The round is well on the way to finding an agreement here, it said. The discussion is going in the right direction.

In addition to Germany and the USA, Great Britain, France, Italy, Japan and Canada also belong to the G7 group. This Sunday, the first day of the meeting in the Bavarian mountains, which lasts until Tuesday, the focus is on the global economic situation, the fight against climate change and security policy.

The aim of such a price cap is that Russia should no longer benefit from price increases on the energy market and can thus continue to finance its war of aggression against Ukraine. At the same time, further jumps in oil prices should be prevented. Although Western sanctions are taking effect against Russia, this does not automatically lead to a drop in Russia's revenues. Not only in the EU, but also in the USA, the high fuel prices are currently a big issue.

The dominant topic of the deliberations at Schloss Elmau, which begin on Sunday afternoon, will be the Russian war of aggression against Ukraine, it was emphasized in government circles. The topic will shape a large part of the debates directly or indirectly. From the point of view of Chancellor Olaf Scholz, who is currently hosting the G7 group, it is important that the summit sends a signal of unified support for Ukraine. For this one is in close contact with the Presidential Office in Kyiv.

The G7 round will also look at the challenges in Asia, according to the German government circles. With a view to the relationship with China, it will be a matter of clearly naming the challenges - including criticism of Beijing's economic conduct. At the same time, however, there should also be a commitment that a whole range of challenges, such as the climate crisis, can only be overcome together with China.

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