Fact Check: The G7 agreed in December 2022 to cap the price of Russian crude oil at $60 per barrel as a condition for access to western ports and shipping insurance.

Fact Check: The G7 Agreed to Cap the Price of Russian Crude Oil at $60 per Barrel

What We Know

In December 2022, the G7 nations, along with Australia and the European Union, agreed to implement a price cap of $60 per barrel on Russian seaborne crude oil. This decision was made to limit the revenue that Russia could generate from its oil exports, which are a significant source of funding for its military activities in Ukraine. The price cap was designed to allow continued access to global oil markets while simultaneously reducing Russian income from oil sales (FACT SHEET, Reuters).

The agreement stipulated that any maritime services, including insurance and financing, would only be available for Russian oil sold at or below this price cap. This was particularly important because companies based in G7 countries control a large portion of the maritime insurance market, which is essential for the transport of oil (FACT SHEET, G7 coalition).

Analysis

The claim that the G7 agreed to cap the price of Russian crude oil at $60 per barrel is supported by multiple credible sources. The official announcement from the U.S. Department of the Treasury clearly outlines the agreement among the G7 and EU member states, emphasizing the cap's purpose of limiting Kremlin revenues while ensuring stable oil supplies to global markets (FACT SHEET).

Moreover, the Reuters report corroborates this information, detailing the agreement's implications for Russia's oil income and the broader geopolitical context (Reuters). The Wikipedia entry on the 2022 Russian crude oil price cap sanctions also provides a concise summary of the events, confirming the price cap's establishment and its intended effects (Wikipedia).

The reliability of these sources is high, as they originate from reputable organizations such as the U.S. government and established news agencies like Reuters. The Treasury's fact sheet is a primary source, directly reflecting the government's policy decisions, while Reuters is known for its rigorous journalistic standards.

Conclusion

The claim that "The G7 agreed in December 2022 to cap the price of Russian crude oil at $60 per barrel as a condition for access to western ports and shipping insurance" is True. The evidence from multiple credible sources confirms that this agreement was indeed reached, with the price cap serving as a strategic measure to undermine Russia's economic capabilities in light of its actions in Ukraine.

Sources

1. FACT SHEET: Limiting Kremlin Revenues and Stabilizing Global Energy Supply with a Price Cap on Russian Crude Oil
2. G7 coalition agrees $60 per barrel price cap for Russian oil
3. 2022 Russian crude oil price cap sanctions
4. G7 Sets Price Cap for Russian Oil at USD 60 Per Barrel
5. Interactive: Seaborne trade in Russian oil under G7 price cap
6. G7 agrees oil price cap - European Commission
7. The Price Cap on Russian Oil
8. The U.S., EU, and UK Implement New $60 Price Cap Related to Russian Oil