G7 Finance Ministers Press Forward With Plan for Price Cap on Russian Oil 

The finance ministers of the Group of Seven leading industrial nations agreed Friday to move forward with an unprecedented plan to cap the price of oil that Russia sells on global markets in order to limit the funds that Moscow uses to pay for the war in Ukraine.

The price cap proposal comes as the European Union prepares to implement a complete embargo on Russian oil in December. The EU plan would also ban companies in the bloc from insuring or financing Russian oil shipments.

U.S. officials have expressed concern that a complete ban on Russian oil sales to the EU, along with the further disruption caused by the insurance and financing restrictions, could tip the global economy into recession.

The price cap, being pushed by U.S. Treasury Secretary Janet Yellen, would create an exception to the ban for oil that is sold at or below the cap.

Energy market experts pointed out that the statement released by the G-7 finance ministers Friday was short on details, however, and that the plan would be extremely difficult to enact. Many large oil consumers, including China and India, are unlikely to participate, and even in countries that promise to honor the cap, compliance would be extremely difficult to monitor.

Triggered by Ukraine war

The finance ministers made it clear Friday that Russian…