G7 to implement Russian oil price cap 'urgently'

G7 industrialised powers on Friday said they would "urgently" move towards the implementation of a price cap on Russian oil imports, in order to stop Moscow from raking in huge profits from soaring energy prices.

Finance ministers from the Group of Seven advanced nations said in a statement they would "urgently work on the finalisation and implementation" of the measure, without specifying the cap level.

"Russia is benefitting economically from the uncertainty on energy markets caused by the war and is making big profits from the export of oil and we want to counter that decisively," German Finance Minister Christian Lindner said in a press conference.

G7 countries wanted to "limit Russia's revenues and reduce the economic damage for our societies", Lindner said.

The aim of the price cap on oil exports was to "stop an important source of financing for the war of aggression and contain the rise in global energy prices", he added.

The G7 sought to form a "broad coalition" of support for the oil price cap to "maximise" the effectiveness of the measure, finance ministers said.

The initial price cap would be set "at a level based on a range of technical inputs" they said, adding that its effectiveness would be "closely monitored".

G7 leaders agreed in late June to work towards implementing the ceiling on crude sales, to exhaust Moscow's war chest and bring down global energy prices.

A G7 official in July explained that the maximum price would remain above the cost of the production, so it would not make economic sense for Moscow to deny oil to importing countries.

The push to get as many countries as possible to agree to the cap is expected to be a key topic for discussion by leaders at the G20 summit in Bali on November 15 and 16.