The Group of Seven (G7) finance ministers have pledged to intensify their efforts to counter Russia’s attempts to circumvent sanctions imposed following its invasion of Ukraine. In a statement after their meeting in Washington, the G7 committed to further actions, particularly targeting violations of the oil price cap implemented last year, though specifics were not disclosed.
The cap, set in 2022 in collaboration with the EU and Australia, aimed to limit Russia’s oil revenues without significantly impacting global oil prices. Despite this, countries such as China have continued to buy Russian crude above the agreed price limit.
The G7 also aims to increase pressure on Russia’s so-called “shadow fleet”—a network of older, unmarked tankers used to transport oil without adhering to sanctions. The tankers are alleged to frequently transfer cargo at sea to avoid detection, and several have already been sanctioned by the US and EU, including vessels owned by Russia’s state-controlled Sovcomflot.
Further, the G7 ministers signalled their intention to prevent financial institutions from supporting Russia’s sanctions evasion, citing networks of foreign subsidiaries established by Russian banks to bypass restrictions.
During the summit, G7 ministers also announced a $50 billion loan to Ukraine, repayable through interest generated from Russian assets seized since the war’s onset in February 2022.