Skip to main content

Making sense of a price cap on Russian energy

The G7 proposal to impose a cap on the price of Russian oil and gas would introduce new supply-side risks by potentially disrupting Russian energy supplies. This could push global energy prices up further, but for now we still see Brent crude prices ending 2022 at $100 per barrel. The cap may also be effective at reducing the Russian government’s tax revenues. We don’t think a cap on the price of Urals crude would need to be too far below $80pb (from $90pb currently) to push Russia’s budget into a deficit.

Note: In light of the G7’s announcement that it plans to implement a price cap on imports of Russian oil, we’re resending this June note explaining how a cap could work and the potential implications for the global energy market and Russia’s economy.

Become a member to read more

This is premium content that requires an active Capital Economics subscription to view.

Already a member?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access