US threatens those evading price cap of consequences: Treasury
In an effort to pressure states to set a price cap on Russian oil, the US Treasury has threatened those who evade it with dire consequences.
Those who violate the price cap on Russian oil exports will suffer consequences under the domestic law of the jurisdictions enforcing the quota, according to US Deputy Treasury Secretary Wally Adeyemo.
"Those that evade the price cap by falsifying documentation or otherwise hiding the true origin or price of the oil would face consequences under the domestic law of the jurisdictions implementing price caps," Adeyemo said during a virtual discussion organized by the Brookings Institution.
US, allies to set price cap on Russian oil above marginal production cost: Treasury
The US and its allies want to place a price restriction on Russian oil that is higher than its cost of production, according to US Treasury Deputy Secretary Wally Adeyemo on Friday.
"We intend to set the price cap above Russia's marginal cost of production at a level consistent with prices they have historically accepted," Adeyemo said during an event hosted by Brookings Institution.
Moreover, 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 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 Adeyemo, a coalition of countries led by the United States and other 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.
Moscow has promised to stop supplying Russian oil to countries that will impose price limitations.
'No gas, no oil'
In response, Russian President Vladimir Putin said on Wednesday that Russia will stop supplying oil and gas to countries that impose price ceilings.
Capping prices, as some Western countries are considering, "would be an absolutely stupid decision," Putin told the Eastern Economic Forum in the Pacific port city of Vladivostok.
"We will not supply anything at all if it is contrary to our interests, in this case economic (interests)," he said. "No gas, no oil, no coal, no fuel oil, nothing."