The G7 plans to cap Russian oil prices

the Group of Seven (G7) countries launched a new attempt to regain the advantage in the West’s energy confrontation with Russia: imposing a price cap on purchases of Russian oil and oil products, probably to take effect on December 5th. The idea is to allow Russian oil to continue to flow, keeping global markets supplied, but to cut the revenues the Kremlin earns from its oil sales, thereby weakening its economy and war effort. Gazprom immediately responded by announcing that the Nord Stream 1 gas pipeline to Europe, which has been open only sporadically and operating far below capacity, would be indefinitely closed—supposedly because of maintenance issues. The energy conflict has escalated another notch, as winter approaches. But whether the West can regain the advantage is far from clear.The G7’s move is a recognition that its existing energy sanctions have not worked. These have involved prohibiting most Western firms, counterparties and banks from dealing in Russian oil and oil products. America has already stopped buying Russian crude; the European Union will fully prohibit purchases of oil on December 5th, and petroleum products on February 5th 2023.