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US in talks with allies to cap Russian oil price: Treasury Secretary

  • By Al Mayadeen English
  • Source: Agencies
  • 21 Jun 2022 15:08
2 Min Read

The US Treasury Secretary indicates that a price ceiling would prevent spillover effects to low-income and developing countries.

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  • US Treasury Secretary Janet Yellen
    US Treasury Secretary Janet Yellen

The United States is in talks with allies to further restrict Russia's oil revenues by ceiling the price it would get for its crude, US Treasury Secretary Janet Yellen said during a visit to Canada on Monday.

"We are continuing to have productive conversations with our partners and allies around the world on how to further restrict energy revenues to Russia, while preventing spillover effects to the global economy," Yellen told a news conference in Toronto.

"We are talking about price caps or a price exception that would enhance and strengthen recent and proposed energy restrictions (imposed by the US and allies)... that would push down the price of Russian oil and depress Putin's revenues while allowing more oil supply to reach the global market," she explained.

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The US Treasury Secretary indicated that a price limit would "prevent spillover effects to low income and developing countries that are struggling with high costs of food and energy."

It is noteworthy that the US, Canada, Britain, and other countries have banned imports of Russian oil, however, the EU remains highly dependent on Russian crude.

Yellen was in Canada to strategize with Deputy Prime Minister Chrystia Freeland on how the two countries will continue to address the Ukraine crisis, tackling soaring inflation, firming up global supply chains, and securing critical minerals.

Both agreed it was largely up to central banks to manage inflation, but left open the possibility of targeted measures by their respective governments to ease the pinch on Americans and Canadians struggling with higher gasoline and grocery bills.                

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