Western countries agree to cap Russian oil price, Experts anticipate an energy war
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After Russia delayed the re-opening of its main gas pipeline to Germany, the West agreed to try and cap the global price of Russian oil.
Finance ministers from G7 countries - Britain, Canada, France, Germany, Italy, Japan, and the United States - met on Friday and decided that a price cap on Russian fuel is meant to reduce Moscow's ability to fund its war. This is also expected to limit global energy prices.
Moscow blamed the delay on a technical fault in the Nord Stream 1 pipeline. Russia said sanctions imposed by the West are behind interrupting routine operations and maintenance of Nord Stream. State-controlled energy giant Gazprom said it can no longer provide a timeframe for restarting deliveries, reported Reuters.
The announcement comes as Europe is preparing for winter. Living costs are already surging in the continent due to the Russian invasion of Ukraine. The United States said it has been collaborating with Europe to ensure sufficient supplies are available for winter.
The relationship between Russia and the West has been strained since the Ukraine war started. Brussels and Washington alleged that Moscow is using gas as an economic weapon.
Germany has pledged Ukraine $199 million in aid for displaced people. Ukrainian Prime Minister Denys Shmyhal is set to visit Berlin on Monday to meet German Chancellor Olaf Scholz.