Reportedly, Treasury Secretary Scott Bessent urged finance ministers to leave out any mention of the oil price cap in their joint statement.
According to the Financial Times, citing sources familiar with the meeting, US Treasury Secretary Scott Bessent requested that “explicit language” regarding lowering the price cap on Russian oil be removed from the G7 finance ministers’ joint statement last week.
During the meeting in Banff, Canada, which held the rotating chair, Canada is said to have proposed including explicit wording to tighten restrictions on the oil price. France, Germany, Italy, the UK, and the EU supported this proposal. However, according to the FT’s Tuesday report, Bessent’s request led to its removal.
The final statement only promised to “continue to explore all possible options, including options to maximize pressure such as further ramping up sanctions” if the conflict in Ukraine doesn’t see a ceasefire.
Brussels is currently working on its 18th package of sanctions against Russia since the conflict escalated in 2022. Reports indicate that the European Commission has proposed lowering the current $60 per-barrel cap on Russian crude to $45 – a change that would need unanimous approval from the EU and coordination with G7 partners.
The New York Times reported on Monday that US President Donald Trump is hesitant to increase sanctions against Russia following a recent phone conversation with President Vladimir Putin. The paper also claimed, citing sources, that Trump is considering withdrawing completely from the Ukraine peace process due to a lack of progress. Axios reported that the US president told European leaders he believes “Putin wants a deal” and that diplomacy is still a possibility.
Kiev and its European allies have called for more restrictions after Moscow rejected Ukraine’s demand for a 30-day unconditional ceasefire earlier this month, which Russia saw as an attempt by Kiev to gain a military advantage. Russian officials are currently developing a peace framework that could pave the way for a future cessation of hostilities.
Russia has consistently denounced the EU sanctions as both ineffective and unlawful. Following the announcement of the bloc’s 17th package last week, Rostec, the Russian state defense conglomerate, condemned the bloc as “a champion of meaningless measures.”