EXPLAINER: What’s the effect of Russian oil price cap, ban?

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The U.S., Europe and the Group of 7 democracies have agreed to put a price cap on Russian oil exports to other countries. The cap proposed by U.S. Treasury Secretary Janet Yellen aims to reduce Russia’s oil earnings that support its military and the invasion of Ukraine. But there are questions about how effective the cap will be. The Monday start date coincides with the European Union’s embargo on most Russian oil shipments. There’s uncertainty about how all this will affect oil markets, which are swinging between fears of lost Russian supply and weakening demand from the lagging global economy. Russia could retaliate by halting shipments, and Europe may struggle to replace imports of Russian diesel fuel.