The U.S. is Determined To Put a Price Cap on Russia’s Oil

oil tanker

The United States has stated its intention to implement the price cap on Russian oil recently proposed by the G7.

“A price cap on Russia oil is a powerful tool — one part of the tool in our agenda to put downward pressure on global energy prices in a way that will benefit consumers in the US and globally,” said Karen Jean-Pierre, White House Press Secretary during her daily news conference on Friday.

“And we are determined to implement this policy in a way that achieves those goals,” she added.

Finance ministers from the G7 declared earlier that day that they would place a cap on the price of Russian oil, a move they hoped would reduce the pressure on global energy costs while also depriving Putin of funds for his in Ukraine.

According to the announcement, the G7 and their allies intend to deny the provision of services that allow maritime transportation of such oil and products unless such goods are purchased at or under a price established by the group of countries complying with and implementing the price cap.

“By committing to finalize and implement a price cap, the G7 will significantly reduce Russia’s main source of funding for its illegal war, while maintaining supplies to global energy markets by keeping Russian oil flowing at lower prices,” said US Treasury Secretary Janet Yellen.

“While we have seen energy prices ease in the United States, energy costs remain a concern for Americans and continue to be elevated globally. This price cap is one of the most powerful tools we have to fight inflation and protect workers and businesses in the United States and globally from future price spikes caused by global disruptions,” she said.

Jean-Pierre told reporters that the G7 price cap is already having an effect.

“Reports show that Russia is already offering steep discounts — as much as 30% — and long-term contracts to some countries. This also demonstrates that Russia is planning to continue supplying its oil and willing to swallow bigger discounts,” she added.

“A price cap will give more countries better leverage to strike deals with Russia. We will further work in the coming weeks to determine the price cap level; release further information, including technical guidance for market participation; and announce our coalition partners as well,” said Jean-Pierre.

Original source material for this article taken from here

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