Treasury Secretary Janet Yellen said on Monday that the US is in discussions with Canada and other partners to further limit Moscow’s energy earnings by setting a price ceiling on Russian oil.

“We are talking about price caps or a price exception that would enhance and strengthen recent and proposed energy restrictions by Europe, the United States, the UK and others, that would push down the price of Russian oil and depress Putin’s revenues, while allowing more oil supply to reach the global market,” Yellen told reporters in Toronto.

“We think a price exception is also an important way to prevent spillover effects to low income and developing countries that are struggling with high costs food and energy,” Yellen said beside Canadian Finance Minister Chrystia Freeland.

According to Yellen, a price exemption is an effective cap that might be accomplished by a structure that restricts or prohibits insurance or finance for Russian oil shipments over a specific level.

Although the United States, Canada, the United Kingdom, and a few other nations have blocked Russian oil imports, the European Union remains heavily reliant on Russian petroleum.

When asked whether US President Joe Biden intended to seek agreement on an oil price plan at the G7 conference in Germany next week, Yellen answered, “We are very active, actively working on this with our partners.”

Canada, according to Freeland, “thinks it is a really good idea” to attempt to reduce Russia’s oil income, but acknowledges that this would be difficult for European nations.

“The path forward here is really to be talking with our European partners and to recognize, you know, how central they are in the decision making here,” Freeland said, adding that Ukraine must also be consulted in any choices.

Source: Reuters

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