Ottawa: The Group of Seven (G7) nations and Australia decided to impose a maximum price cap on seaborne Russian-origin crude oil.

The maximum price for seaborne Russian-origin crude oil will be US$60 per barrel. Buyers who do not abide by the price cap will not be able to obtain services, like shippers’ insurance, from companies in any of the Coalition countries (G7 partners and Australia).

The EU also agreed the price after holdout Poland gave its support.

This price cap mechanism has been carefully designed to reduce Russian revenues, and thus limit Russia’s ability to fund its war against Ukraine, while recognizing the supply chain limitations of global energy markets and minimizing negative economic spillovers. The mechanism also allows for adjustments so that the price cap could be shifted down.

Canada’s ban on imports of Russian oil—which came into force on March 10, 2022—remains in effect.

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