Investing.com -- The European Union's leading diplomat, Kaja Kallas, has urged allies of Ukraine to consider reducing the price cap on Russian oil. The objective of this measure is to limit the Kremlin's revenue stream.
In an interview with Bloomberg Television's Oliver Crook on Tuesday, Kallas emphasized the potential impact of such a move. She highlighted that Russia is currently facing difficulties due to the depletion of their national fund and a decrease in revenues from oil and gas. However, she believes there is still potential to exert further pressure.
The Group of Seven nations (G7) is reportedly considering ways to strengthen the price cap on Russian oil. This is part of their strategy to target Moscow's ability to finance its war against Ukraine. As reported by Bloomberg last month, the options being considered range from replacing the current mechanism with a complete ban on handling Russian crude to reducing the price threshold from the existing $60 to approximately $40.
However, sources familiar with these discussions report that there is no unanimous agreement on how to proceed at this time.
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