Subhechcha Ganguly 
The EU, G7, and Australia reached an agreement on a $60 price cap for Russia’s oil, but Russia rejected it, claiming that it would cause the Russian economy to collapse. Following that, on Monday morning, the price of global Brent crude increased by around 0.6% to above $86 per barrel.In addition to the EU’s ban on maritime imports of Russian crude oil and similar commitments made by the US, Canada, Japan, and UK, the cap will also be imposed.
It permits the use of G7 and EU tankers, insurance firms, and financial institutions to transport Russian oil to third-party countries for a price of no more than $60 per barrel. The cap might make it challenging for Moscow to sell its oil for a higher price because the major shipping and insurance companies in the world have their headquarters in G7 nations. Those nations can continue to purchase Russian oil above the price cap without utilising Western services for its acquisition, insurance, or transportation.
According to U.S. Treasury Secretary Janet Yellen, low- and middle-income nations who have suffered the most from high energy and food prices will notably benefit from the cap. The price ceiling “will instantly cut into (President Vladimir) Putin’s most important source of income, given that Russia’s economy is already declining and its budget is becoming more and more stretched thin,” Yellen said in a statement. Since the war began, India and China have ranked among the top importers of Russian crude oil, and the reason for this is said to be the discounted low-cost supply that was agreed upon through diplomatic means.
