G7 nations mulling \`price cap\` on Russian oil

The leaders of the Group of Seven (G7) rich democracies on Sunday discussed on a possible cap on Russian oil imports to fight fast-rising inflation.

They held talks on how to strengthen the world economy_ European Commission President Ursula von der Leyen said after the first session on the global economy.

Noting that energy prices were the biggest cause of inflation_ von der Leyen said Europe sought to mitigate this through supply diversification_ energy savings_ and renewables.

To solve this problem and reduce dependence to Russia_ one measure that the leaders if the bloc are discussing is a price cap on Russian oil.

Oil prices have soared to record levels since Russia's invasion of Ukraine and carrying the price of Brent to $125.19 last week.

By setting a limit on the Russian oil price_ Western nations hope to curtail Moscow's revenues while allowing more oil supply to reach the global market at the same time.

US Treasury Secretary Janet Yellen had earlier said_ a price cap on Russian oil would be an important way to prevent spillover effects to developing and low income countries that are fighting high costs of food and energy.

To be discussed at the G7 Summit_ the United States had proposed a price cap to be decided by oil consumers.

More details on a price cap are likely to be revealed during the three-day G7 summit in Germany. The group consists of Canada_ France_ Germany_ Italy_ Japan_ the UK and the US.