The price cap on diesel follows on from a price cap on Russian crude oil. The measures are intended to make Russia’s invasion of Ukraine unviable.

The Group of Seven (G7) industrialized countries, the European Union and Australia agreed to limit the price of Russian diesel on Friday.

The new price cap focuses on refined oil products, following up from a previous price cap on Russian crude oil exports in December.

The price of diesel will be capped at $100 (€92) per barrel, while lower-quality products such as fuel oil will be capped at $45 per barrel.

Responding to Russia’s invasion

Sweden, which holds the rotating EU presidency, said the price cap was an “important agreement as part of the continued response by EU and partners to the Russian war of aggression against Ukraine.”

US Treasury Secretary Janet Yellen said these measures are forcing Russian President Vladimir Putin to “choose between funding his brutal war or propping up his struggling economy.”

Ahead of the announcement, the Russia claimed the new measures would “lead to a further imbalance of the international energy markets.”

“We are taking measures to hedge our interests against the risks associated,” Kremlin spokesman Dmitry Peskov told reporters.

zc/fb (AP, AFP, Reuters)