July 6, 2022

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US and allies want price caps on Russian oil |  Now

US and allies want price caps on Russian oil | Now

The United States, the United Kingdom and other allies want Russia to make less money by selling oil. That’s why, along with other countries, they are looking to introduce higher prices, said U.S. Treasury Secretary Janet Yellen.

Proceeds from the sale of fossil fuels, such as oil and gas, are an important means for Russia to finance the war against Ukraine. That is why, for example, the United States and Canada have decided to stop buying Russian oil.

The EU has also agreed to ban oil imports from Russia by the end of this year. Exceptions have been made for some countries because oil will still be needed after this year.

To reduce Russia’s revenues, countries want to influence oil prices. According to Yellen, this can be done by restricting or restricting insurance and funding for oil transport above a certain amount. It is not said how it should be.

It is not yet certain whether this measure will be implemented. The countries concerned are still discussing this with each other, to accommodate inputs from Ukraine as well.

According to the International Energy Agency (IEA), Russia currently earns 19 billion euros a month from oil sales. Western countries have been declining in recent times, but this is offset by higher sales to China and India. However, Russia has to sell oil to those countries at a substantial discount.

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