G7 set to back pursuing Russian oil price cap, tariff hikes due to Ukraine

The Group of Seven economic powers are set to announce an agreement to pursue a price cap on Russian oil, aiming to curb Moscow's energy revenues, a US official said Monday.

The move is part of a joint effort of support for Ukraine that includes raising tariffs on Russian goods and imposing new sanctions on hundreds of Russian officials and entities supporting the four month long war.

Leaders were finalizing the deal to seek a price cap during their three-day summit in the German Alps.

The details of how a price cap would work, as well as its impact on the Russian economy, were to be resolved by the G-7 finance ministers in the coming weeks and months.

The largest democratic economies will also commit to raising tariffs on Russian imports to their countries, with the US announcing new tariffs on 570 categories of goods, as well as use of sanctions to target Russia's defense supply chains that support its effort to rearm during the war.

The senior administration official spoke on the condition of anonymity to preview the announcements from the G-7 leaders' summit, where they are set to confer by video link with Ukrainian President Volodymyr Zelenskyy.