The Group of Seven prosperous democracies will commit on Tuesday (June 28) to a new package of coordinated actions to increase pressure on Russia over its war in Ukraine, and finalize plans for a price cap on Russian oil, a senior US official said on Monday.
The announcement came amid news that Russia was set to plunge into its first sovereign lapse in decades and Ukrainian President Volodymyr Zelensky spoke to address a meeting of G7 leaders at an alpine resort in southern Germany.
“The G-7 leaders have a dual objective to aim directly at (Russian President Vladimir) Putin’s revenues, particularly through energy, but to reduce spillover and impact on G7 economies and the rest of the world,” the US official said.
The G7 nations, which account for nearly half of the world’s economic output, are already determined to ease pressure on Russia without stopping rising inflation, which is particularly hurting the global south. The price cap could hit the Kremlin’s war chest while actually lowering energy prices.
The White House said in a fact sheet that the G7 leader would also make an “unprecedented, long-term security commitment” to provide financial, humanitarian, military, and diplomatic assistance to Ukraine, including the timely provision of advanced weapons.
Western sanctions have hit Russia’s economy badly and the new measures are aimed at further depriving the Kremlin of oil revenues. According to a US official, the G7 countries will work with other countries, including India, to limit the revenue Putin generates.
“This morning’s news about Russia’s discovery of the omission, for the first time in more than a century, shows how strong the US has taken action with allies and partners, as well as how dramatic the impact has been on Russia.” on the economy,” the official said.