US-led group to impose Russian energy price cap by Dec 5: US Treasury
In an effort to reduce the Kremlin's revenue, a number of countries outside the Group of Seven (G7) agree to join a coalition to impose a price cap on Russian energy.
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Finance ministers from the Group of 7 industrialized nations meet in June 2021.(Stefan Rousseau / Pool Photo).
A number of countries outside the Group of Seven (G7) have agreed to join a coalition to impose a price cap on Russian energy in an attempt to reduce the Kremlin's revenue, according to US Deputy Treasury Secretary Wally Adeyemo.
"A number of other countries have agreed to come aboard the price cap coalition in order to make sure that we have a broader coalition that will both enforce the price cap going forward, but also a number of countries that are importers that are considering joining," Adeyemo told Yahoo News an interview.
According to Deputy Treasury Secretary Wally Adeyemo, a coalition of countries led by the United States and other Group of Seven (G7) partner countries will implement a price cap on Russian energy by December 5.
“We’re going to put in place a price cap by December 5,” Adeyemo told Yahoo News.
Enforcement organizations to announce Russian energy price cap rules soon
The US Treasury Secretary Wally Adeyemo said organizations involved in the enforcement of a proposed price cap on Russian energy will soon announce rules regarding permissions under the price cap.
"In terms of when you think about the way this will be enforced, fundamentally, organizations like the Treasury Department in the United States and similar organizations across the G7 will put out rules and guidelines, some of which will be coming out in the next few days, that will talk about how you will have permission to use financial products to ship Russian oil," Adeyemo told Yahoo News an interview.
Read next: Experts: price cap on Russian oil to further aggravate energy crisis
He added, “Our goal is to make sure the supply stays high, so part of the goal of the price cap coalition is to create incentives for Russia to continue to ship its oil. We’re going to set the price cap above Russia’s price of production. We’re going to give them the ability to use G7 services to sell their oil as long as it’s sold under the price cap."
India interested in Russian price cap coalition, US hopes China joins too
Adeyemo revealed that Indian officials have expressed interest in possibly joining an international coalition for a price cap on Russian energy, and the US hopes China will join the effort as well.
"I had a good trip in India where price cap was amongst many issues that we talked about … The thing they care most about is paying the least amount of money for energy and making sure that they can secure energy supply for the Indian people, and that’s why they’re interested in continuing the conversation about the price cap," Adeyemo said during an interview with Yahoo News.
Read next: Putin warns 'no gas, no oil' to if prices capped
"Our hope is that India will come on board, and China will also consider it."
The majority of the European Union member states will most likely not support the idea to impose a price cap on Russian gas, an EU source told reporters on Thursday.
The source said the EU countries want to understand what effect this idea would have on the market.
