Sixty dollars. That’s the per-barrel price cap G7 countries and Australia imposed on Russian crude oil last week. The measure will allow Western service providers to ship and insure Russian oil, as long as it’s sold at a price below the cap. The purpose is to reduce Russia’s petro-revenue, which funds its war on Ukraine, while still keeping its oil flowing to the global market.

This measure breaks new ground as a tool of economic statecraft. Analysts around the world are anxiously watching to see how the oil market – and the Russians – might respond.

Will the price cap achieve its objective? And what does this mean for the future of energy policy?

This week host Jason Bordoff talks with Eddie Fishman and Tatiana Mitrova. 

Eddie is a senior research scholar at the Center on Global Energy Policy (CGEP) at Columbia University and an adjunct professor of international and public affairs. He previously led the U.S. State Department’s design and implementation of sanctions on Russia. You can find two explainers he wrote about the price cap on Russian oil on CGEP’s website. 

Tatiana is senior research fellow at CGEP and one of the world’s foremost experts on the Russian energy sector. She has served as executive director of the Energy Centre of the Moscow School of Management and as head of research in the Oil and Gas Department in the Energy Research Institute of the Russian Academy of Sciences. 

Eddie, Tatiana, and Jason talk about what the price cap could look like in practice, and how Russia might respond. They also discuss the impact of sanctions already in place.