Russia’s oil price cap is a sensible but slippery solution

The G7’s proposal to cap the price of Russian oil is, in theory, an elegant proposition that can kill two birds with one stone: curb inflation while minimizing Russia’s oil revenues. But it’s also one that has the potential to hurt everyone involved.

The European Union’s ban on Russian crude oil imports by sea begins in December, so a price cap would allow Europe, as well as other major importers such as India and China, to pay less until the ban comes into effect. These two countries are now reaping the financial benefits of discounted Russian crude, while many Western buyers have avoided shipments, bearing the costs.


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