The G7’s oil price cap is a perilous gamble
Johannes Nordin
Introduction:
Right before Russia’s Gazprom completely stifled gas flows through the Nord Stream I pipeline, G7 leaders had agreed in early September to implement a price cap on Russian energy exports. By leveraging Europe’s central position in the global maritime insurance industry, these measures seek to lower Russia’s inflated energy income not just from sanctioning states but from third countries as well.
However, the eleventh-hour mechanism carries grave risks and unintended consequences that shouldn’t be ignored.
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