G7 Nations Contemplate Lowering Russian Oil Price Cap Amidst U.S. Uncertainty

The Group of Seven (G7) countries are set to review the oil price cap on Russian exports at their upcoming summit in Canada, regardless of U.S. President Donald Trump's position on the matter. Set in late 2022, the current $60 cap is now deemed ineffective following recent declines in oil prices.

Proponents of the cap reduction, particularly the European Union and Britain, are prepared to lead the charge with support from Canada and other European G7 nations. While the U.S. has not taken a definitive stance yet, some Senators, like Lindsay Graham, advocate for lowering the cap, aligning it with broader sanctions against Russia.

While U.S. participation is seen as beneficial, due to its significant role in oil payment systems, Britain's shipping insurance market leadership and the EU's influence over Western tankers are expected to drive the initiative. Meanwhile, pressure from these restrictive measures is already impacting Moscow's revenues, with Rosneft's profits sharply declining.

(With inputs from agencies.)