Summit in the Shadow of War: Plan G7 International Brake on Oil Prices

Summit in the shadow of war
The international brake on oil prices in the G7 plan

Western sanctions have an effect and Russia exports less oil. However, sales in Moscow are still rising due to rising prices. At the same time, the economy and consumers are suffering worldwide. The G7 countries want to change this with an international price cap.

Shortly before the official opening of the G7 meeting in Elmau, Bavaria, German hosts see the debate on the international upper limit of Russian oil prices as good. 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 bike is well on its way to finding a deal, he said. The discussion is going in the right direction.

In addition to Germany and the USA, the G7 also includes the United Kingdom, France, Italy, Japan and Canada. This Sunday, the first day of the meeting in the Bavarian mountains, which runs until Tuesday, focuses on the global economic situation, the fight against climate change and security policy.

The aim of such a price cap is for Russia to no longer benefit from rising energy market prices so that it can continue to finance its offensive war against Ukraine. At the same time, further sharp increases in oil prices should be avoided. Western sanctions against Russia are beginning to take effect, but this does not automatically lead to a decline in Russian revenues. Not only in the EU but also in the USA, high fuel prices are currently a big problem.

Close coordination with Kiev

The dominant theme of the talks at Elmau Castle, which begins on Sunday afternoon, will be the Russian offensive war against Ukraine, government circles have stressed. The topic will directly or indirectly form a large part of the debate. From the point of view of Chancellor Olaf Scholz, who currently hosts the G7, it is important that the summit sent a signal of united support to Ukraine. To this end, he is in close contact with the Presidential Office in Kiev.

According to German government circles, the G7 round will also focus on the challenges in Asia. Given the relationship with China, this will be a clear naming of the challenges – including a critique of Beijing’s economic behavior. At the same time, however, there should be a commitment that a number of challenges, such as the climate crisis, can only be overcome together with China.

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