Russian oil could be hit with a price cap as G7 aims to cut off Moscow's ability to fund its war machine

• G7 leaders including the US, UK and Germany met Sunday to discuss a price cap on Russian oil.
• The talks are continuing Monday and will include other nations, such as India and South Africa.

G7 leaders met Sunday in the Bavarian Alps to discuss a possible price cap on Russian oil as a way to further squeeze Moscow, which is continuing to reap hefty energy revenues.

The talks are continuing Monday and will include other nations like Argentina, South Africa, Senegal, Indonesia, and notably, India — which has been buying up huge amounts of Russian oil on the cheap since the war in Ukraine began.

Under the plan, Europe would leverage its global dominance in shipping and insurance services by restricting availability to them unless importers of Russian oil observe the price caps.

German Chancellor Olaf Scholz said the approach would need wide-spread buy in from other nations, though if accomplished, it could send a clear signal of "unity and decisive action," according to the Financial Times.

Meanwhile, crude prices have surged this year, and Russia continues to rake in huge profits from its oil and gas exports. Bank of America has forecasted that prices could hit $150 if more EU sanctions slam Russian supplies.

In May, the EU agreed to a ban on seaborne Russian crude imports which will be implemented throughout the year. EU sanctions on insurances services would also hit buyers of Russian oil outside the trading bloc.

The US has already banned Russian crude, and the UK is also aiming to phase out barrels by the end of the year.

Still, the the targeting of Russian energy supplies has helped further boost prices, contributing to Europe's energy crisis.

The president of the European Council, Charles Michel, said the bloc was prepared to discuss a price cap but maintained that a "clear vision" was necessary to move forward.

"We want to make sure the goal is to target Russia and not to make our life more difficult and more complex," Michel said, per the FT.