G7 Leaders Look To Adopt Price Cap On Russian Oil To Limit Moscow's Energy Revenues

G7 and EU leaders pose for a family photo during the summit at Bavaria's Schloss Elmau castle, near Garmisch-Partenkirchen, Germany, on June 26.

Leaders of the Group of Seven (G7) nations, meeting for a second day at a summit in Germany, are expected to agree to a price cap on Russian oil to limit Moscow's energy revenues as the centerpiece of new sanctions on Russia for its unprovoked invasion of Ukraine.

Several international media outlets quoted U.S. officials on June 27 as saying details of how the price cap would work are being ironed out during the summit, which ends on June 28.

"The dual objectives of G7 leaders have been to take direct aim at [Russian President Vladimir] Putin's revenues, particularly through energy, but also to minimize the spillovers and the impact on the G7 economies and the rest of the world," Reuters quoted a U.S. official as saying in a background briefing on the sidelines of the annual G7 summit.

The group of wealthy Western nations has been looking to ratchet up pressure on Moscow while trying to minimize any harm that could be done to their own economies. Oil prices have jumped since Russia launched its war against Ukraine on February 24 as sanctions limit Russian crude exports.

Many Western nations and the European Union already have imposed several rounds of sweeping sanctions against Moscow to isolate President Vladimir Putin and cripple Russia's economy to try and force the Kremlin to end the war.

The White House said leaders at the summit will also make an "unprecedented, long-term security commitment to providing Ukraine with financial, humanitarian, military and diplomatic support as long as it takes," including the timely provision of advanced weapons.

Based on reporting by AP, Reuters and The New York Times.