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G7 ready to explore caps on energy prices to curb Russian revenues

Talk of price ceilings at summit in Bavaria comes as leaders seek to ease energy pressures on economies worldwide

G7 members are to explore ways of curbing energy costs, including via possible caps on the price of oil and gas, at a summit that has been overshadowed by fears of a recession induced by rising inflation.  

Officials on Tuesday evening settled on summit conclusions that seek to develop solutions to reducing Russia’s hydrocarbon revenues while minimising the negative impacts of high energy prices, officials said.

According to a draft text seen by the Financial Times, leaders will explore the “feasibility” of introducing temporary price caps on imports of energy — a reference to a US-led push for a ceiling on the Russian oil price. A G7 official said earlier that capitals agreed it was a good idea, but a “great deal of work” remained to be done to make it a reality.

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