G7 to hike sanctions on Russia, close to oil price cap deal: US official

U.S. President Joe Biden, German Chancellor Olaf Scholz, French President Emmanuel Macron, Canadian Prime Minister Justin Trudeau, Italian Prime Minister Mario Draghi, European Council President Charles Michel, President of the European Commission Ursula von der Leyen, Japanese Prime Minister Fumio Kishida and British Prime Minister Boris Johnson attend a working session with Ukrainian President Volodymyr Zelenskiy in virtual attendance, during the G7 leaders summit at Bavaria's Schloss Elmau castle, near Garmisch-Partenkirchen, Germany June 27, 2022. Photo: Reuters

The Group of Seven rich democracies will commit on Tuesday to a new package of coordinated actions aimed at increasing pressure on Russia over its war in Ukraine and will finalise plans for a price cap on Russian oil, a senior US official said today.

"The dual objectives of G7 leaders have been to take direct aim at (Russian President Vladimir) Putin's revenues, particularly through energy, but also to minimise the spillovers and the impact on the G7 economies and the rest of the world," the official said in a briefing on the sidelines of the annual G7 summit.

Western nations are keen to crank up the pressure on Russia without stoking already soaring inflation that is particularly hurting the global south. The price cap could hit the Kremlin's war chest while actually lowering energy prices.

G7 leaders will also make an "unprecedented, long-term security commitment to providing Ukraine with financial, humanitarian, military and diplomatic support as long as it takes," including the timely provision of advanced weapons, the White House said in a fact sheet.

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