Media: Most G7 nations ready to cut Russian oil price cap without US backing

A majority of the Group of Seven (G7) nations are prepared to reduce the price cap on Russian oil independently, even if US President Donald Trump decides not to support the move, according to four sources familiar with the situation.

Leaders of the G7 are scheduled to gather in Canada from June 15 to 17, where one of the key agenda items will be the oil price cap first implemented in late 2022. That cap permits Russian oil to be exported to third-party nations using Western insurance and financial services, provided the sale price does not exceed $60 per barrel, Caliber.Az reports, citing foreign media.

Recently, both the European Union and the United Kingdom have been urging a revision of the cap, arguing that falling global oil prices have rendered the $60 threshold largely ineffective. The cap was initially intended to restrict Russia's revenue generation capabilities to finance its war in Ukraine.

The sources, who requested anonymity, said the EU and UK are prepared to take the lead in lowering the cap, with backing from the other European G7 members and Canada. They noted that the position of the United States remains uncertain, although European nations are striving to achieve a unified agreement at the upcoming summit. Japan’s stance is also still unclear.

“There’s momentum among European nations to lower the cap to $45 from the current $60,” said one of the sources. “Canada, the UK, and potentially Japan are signalling support. The G7 summit will be a key moment to try to get the US on board.”

When asked whether President Trump supports maintaining the oil price cap on Russian exports, a White House official stated only that the president is looking forward to a “robust discussion on key economic and geopolitical issues” at the summit.

During last month’s G7 finance ministers’ meeting in the Canadian Rockies, US Treasury Secretary Scott Bessent reportedly expressed scepticism about the need to reduce the cap, according to the same sources.

However, some members of the US Congress may be more supportive. Senator Lindsey Graham has publicly backed the idea of lowering the cap, and he is also advancing a new sanctions package against Russia that would include substantial tariffs on nations purchasing Russian oil.

The Canadian foreign ministry did not immediately respond to requests for comment.

The European Union has already proposed cutting the price cap to $45 per barrel in its latest 18th sanctions package targeting Russia. However, the adoption of this package will require unanimous approval from all EU member states, a process that could take several weeks.

Currently, Russia’s primary export blend, Urals crude, trades at a discount of about $10 per barrel compared to the Dated Brent benchmark from Baltic ports. Brent futures have remained under $70 per barrel since early April.

Although Washington’s approval is not seen as crucial for enforcing a lower cap, due to the UK’s dominant position in global shipping insurance and the EU’s regulatory control over much of the Western-compliant tanker fleet, the US still plays a vital role in dollar-based oil transactions and in the international financial system.

The EU and its allies have intensified efforts to dismantle Russia’s so-called “shadow fleet” of tankers and affiliated entities that attempt to bypass the cap. These enforcement measures are starting to impact Russian revenues, with the aim of steering more of the oil trade back within the price-capped framework.

This pressure appears to be taking a toll: Russian state oil giant Rosneft reported a 14.4% drop in profits last year. Western officials are hopeful that stronger enforcement and a lowered cap will further shrink Moscow’s oil revenues.

By Tamilla Hasanova