On September 2, 2022, the Group of 7 (“G7”) Finance Ministers issued a joint statement confirming their intention to implement a price cap for the purchase of Russian-origin crude oil and petroleum products. The statement says that G7 nations, along with other allies and partners, plan to prohibit the provision of services that enable maritime transportation of such products unless purchased at or below a price level determined by the coalition of countries adhering to and implementing the price cap.
Separately, US Treasury Secretary Janet Yellen issued a statement providing that the price cap is a tool to fight inflation and protect workers and businesses from future energy price spikes caused by global disruptions. The US Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) anticipates publishing preliminary guidance on the implementation of the price cap in September.
The author acknowledges the assistance of Ryan Orange with the preparation of this blog post.