Trump Aministration again moves to protect Putin, blocking G7 from lowering oil price cap
After 3 days of non-stop Russian missile barrages on Ukraine, the Trump administration has reportedly blocked a G7 initiative to lower the $60-per-barrel price cap on Russia’s oil exports, according to a Financial Times report. The proposal, initially discussed during last week’s G7 finance ministers’ meeting, aimed to tighten restrictions on Russian oil revenues amid ongoing concerns about the effectiveness of existing sanctions.
The price cap, implemented in December 2022 by the G7 and the European Union, prohibits Western companies from providing shipping, insurance, or other services for Russian oil sold above $60 per barrel. This measure was designed to limit Moscow’s oil income while maintaining global supply.
Despite these efforts, enforcement challenges have emerged. Russia has reportedly utilized a "shadow fleet" of tankers and alternative insurance arrangements to circumvent the cap, allowing it to continue exporting oil above the price threshold.
The U.S. Treasury’s decision to oppose tightening the cap has sparked debate among allies. Some European officials express concern that the current measures are insufficient to significantly impact Russia’s oil revenues, which are crucial for funding its military activities in Ukraine.
Analysts suggest that without stricter enforcement and lower price caps, Russia may continue to find ways to bypass sanctions, undermining the collective efforts to curtail its oil income. The situation underscores the complexities of coordinating international sanctions and the need for unified action to address enforcement loopholes.
As discussions continue, the effectiveness of the existing price cap and the potential for future adjustments remain central to the international community’s strategy in responding to Russia’s actions in Ukraine.
The Trump administration has gone from merely preventing the US from slowing Putin’s expanding global terror to preventing even Ukraine’s allies from doing so.
