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Organization of Seven nations is examining a cap on the price of Russian oil that would work by compelling restrictions on insurance and shipping, according to people familiar with the issue.

The probable mechanism would barely allow the transportation of Russian crude and petroleum commodities sold below an agreed limit, the people said. Dialogues among G-7 leaders and officials are continuous, and a consensus has yet to be reached, they announced.

President Vladimir Putin’s incursion on Ukraine and its economic consequence are the key topics under meeting at a three-day summit underway in the Bavarian Alps. G-7 states are seeking ways to limit the Kremlin’s energy revenue while mitigating the consequence on their economies amid rising inflation and efforts to prevent reliance on Russian oil and gas.



While a mechanism is on the agenda and the concept could be agreed in principle, it is not yet clear whether leaders will be able to pin down specific details, such as the level of the price cap, before the summit’s end, two of the people said.

European Council President Charles Michel substantiated that leaders were scheming to discuss the proposed cap in detail, but that there were “many challenges” to be endured.

“We are ready to take a decision together with our partners, but we want to make sure that what we decide will have the negative effect on Russia and not a negative effect on ourselves,” Michel told reporters at the summit.

A German government official told reporters on Saturday that while the questions that needed unraveling were not trivial, the group was at least on a path to finding an agreement. The US is also optimistic a solution will be found, a senior Biden government official said.

The European Union approved last month to introduce an embargo on insurance related to the transportation of Russian oil, and any move to add on a release would require the backing of all 27 member states. Some officials have raised concerns about re-opening that legal text as it took weeks to agree in the first place. Still, incorporating a new transportation ban in any mechanism could help to alleviate grievances linked to weakening the insurance ban.

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