Australia will support the G7 countries’ plan to cap the price on Russian oil imports in a bid to restrict its ability to fund its invasion of Ukraine.

Treasurer Jim Chalmers said the price cap would help ease global oil prices, and urged other countries to join the partnership of nations.

“We’re looking to limit some of the impacts of the war in Europe on the cost of living by supporting this price cap,” Dr Chalmers said on Monday.

The government said the move would “not completely deal with this challenge” but should work to ease pressures on global oil prices.

The wealthy G7 countries — the United States, Japan, Germany, Britain, France, Italy and Canada — agreed to set a price cap on Russian oil imports in early September.

The G7 partners expect the cap to work by banning insurance and financial services to ships carrying Russian oil above the price ceiling.

The Kremlin has since said it would stop selling oil to countries that imposed price caps, and warned the move could destabilise the oil market further.

Australia’s support for the price cap follows the nation’s complete ban on importing, purchasing and transporting Russian oil, gas, refined petroleum products and coal.

Foreign Minister Penny Wong reiterated Australia’s support for Ukraine.

“Australia condemns Russia’s unilateral, illegal and immoral aggression against the people of Ukraine,” Senator Wong said

“Australia strongly supports Ukraine’s sovereignty and territorial integrity, and we call on Russia to immediately withdraw its forces from Ukrainian territory.”

– AAP

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