The G7 group might impose tariffs on Russian oil as an alternative to an embargo.
Representatives of the US Treasury Department, at a meeting of G7 finance ministers, will propose that the EU introduce tariffs on Russian oil as a faster alternative to a direct oil embargo. The US Treasury Department argues that the tariff mechanism, which the US officials will propose, will be designed to keep Russian oil on the market but limit the amount of revenue that can come to Moscow from exports. Officials say many countries have a “strong desire to stop buying Russian oil as soon as possible,” but a direct EU embargo could significantly raise oil prices. This, in turn, may offset the impact of the embargo on Russian revenues, even if exports are reduced. In addition, funds from such duties could be channeled to Ukraine’s Reconstruction Fund, forcing Russia to pay for the destruction it has brought to Ukraine.