A majority of G7 nations are ready to slash the Russian oil price cap even if the United States declines to join, sources close to the negotiations told Reuters ahead of the June 15–17 G7 leaders’ summit in Canada.

The cap, initially set at $60 per barrel in 2022 to limit Moscow’s wartime revenues while allowing trade via Western insurance, has become ineffective due to falling oil prices. The European Union, UK, and Canada are now pushing to reduce it to $45, citing economic necessity and strategic pressure on the Kremlin.

“There is a push among European countries to reduce the oil price cap to $45 from $60,” said one European source. Japan’s stance remains unclear, and U.S. Treasury Secretary Scott Bessent has shown reluctance to support the cut.

EU Leads While U.S. Remains Cautious

Although some U.S. senators, including Lindsey Graham, support tougher sanctions, the White House has not endorsed the price cap reduction. During a recent G7 finance summit, U.S. officials expressed skepticism about the need to adjust the cap.

Despite this, European G7 members believe their combined influence—especially over Western insurance services and shipping—gives them enough leverage to enforce the new cap, even without U.S. financial system cooperation.

Targeting the Shadow Fleet and Revenues

The G7 strategy also includes efforts to crack down on Russia’s “shadow fleet” of tankers circumventing the price cap. Analysts say these enforcement efforts are beginning to impact Russian revenues, with oil giant Rosneft reporting a 14.4% drop in profits last year.

With Brent futures now below $70 and Russia’s Urals crude trading at a $10 discount, the existing cap is largely symbolic, prompting urgent calls for revision.