Environment and Natural Resources

The price cap on Russian oil implemented today by the G7 countries plus Australia represents a novel approach to sanctions. The policy is designed to reduce Russian fossil fuel revenues while keeping Russian oil on the market. In this brief, Catherine Wolfram, Simon Johnson, and Łukasz Rachel explain the basic economic principles at work and discuss some of the critiques of the price cap. 

"...[I]t is clear that the international community possessed neither the analytic tools nor the institutional capabilities to deal with a world order in which ethno-religious groups, and not nation-states, were the primary operative actors. Which brings us back to the question: what if organized state violence and warfare is the exception rather than the rule in international security?"