G7 finance ministers have pledged to increase pressure on those purchasing Russian oil, in an effort to curb Moscow’s revenue streams for its ongoing war in Ukraine. This commitment was made in a joint statement following a virtual meeting of the Group of Seven advanced economies, which includes Britain, Canada, France, Germany, Italy, Japan, and the United States.
The ministers agreed that it is essential to “maximise pressure on Russia’s oil exports” to impact Moscow’s revenue needs for the war. They specifically stated that they will target individuals and entities that have continued to increase their purchase of Russian oil since the invasion of Ukraine, as well as those facilitating circumvention of existing measures.
To achieve this goal, the G7 ministers have agreed on the importance of implementing trade measures, including tariffs and import or export bans, to cut off Russian revenues. They are also considering trade measures and other restrictions on countries and entities that are helping finance Russia’s war efforts, including those involved in the trade of refined products sourced from Russian oil.
The statement comes after the United States indicated its willingness to broaden tariffs targeting buyers of Russian oil, provided the European Union takes similar measures. The European Commission has also been working on potentially imposing tariffs on imports of Russian oil into the bloc.
The G7 ministers’ decision is a significant development in the ongoing efforts to pressure Russia to end its war in Ukraine. The ministers plan to meet again on the sidelines of the annual meetings of the International Monetary Fund and World Bank in Washington this month, where they will likely continue to discuss and refine their strategy.
The international community has been imposing sanctions on Russia since its invasion of Ukraine over three years ago, in an effort to curb its aggression and protect Ukraine’s sovereignty. The G7 ministers’ commitment to increasing pressure on Russia’s oil exports is a key aspect of these ongoing efforts, and its impact will be closely watched in the coming months.
