G7 looks at tariffs, price caps to cut Russian oil

G7 looks at tariffs, price caps to cut Russian oil

Washington, 18 May (Argus) — Tariffs and price caps are among possible options the G7 group of major economies is discussing for strengthening the sanctions regime targeting Russia's energy exports, US treasury secretary Janet Yellen said today.

"A number of ideas have been discussed and you have probably heard tariffs, price caps, other possibilities that are on the table and we continue to look at those things," Yellen told reporters, speaking just ahead of the G7 meeting of finance ministers and central bank governors in Bonn, running from 18-20 May. No decision has been made, Yellen said, but added that the focus of future sanctions is on reducing the revenue Russia derives from oil and natural gas exports, rather than reducing physical volumes of exports.

The G7 group of major economies said it plans to reduce reliance on oil imports from Russia "in a timely and orderly fashion," signaling support for the EU's approach of gradual phase-out of such supplies instead of an outright ban like those imposed by the US and Canada.

A gradual approach would prevent immediate hikes in oil prices that would be counter-productive for the purpose of sanctions, US officials said previously — Russia could end up selling less