“Global and growing coalition” to prevent Russia from arming itself with the oil windfall
Biden administration minister Janet Yellen will be in Bali, Indonesia, to participate in the meeting of finance ministers and central bank governors on July 15-16, a senior Treasury official told reporters on Thursday.
Adding that a “global and growing coalition” of countries shared Washington’s objectives of depriving Russia as much as possible of revenues currently largely intended to fund its military.
Tackling the impact of the war in Ukraine on energy prices
The finance ministers are also working to “address the impact that this unprovoked war is having on energy prices, which is particularly hurting emerging markets,” senior officials said at the same time.
The Western sanctions taken against Russia following its invasion of Ukraine on February 24 have notably caused a surge in world fuel prices, impacting the economy and politics of many countries.
G7 agreement to create a capping mechanism
At a summit at the end of June, the leaders of the G7 countries pledged to develop a mechanism intended to cap the price of Russian oil at the world level, in order to deprive Moscow of part of its energy windfall.
Since the start of the conflict, European countries have indicated that they are doing their “best efforts” to reduce their own consumption of Russian hydrocarbons. But at the same time, Russia’s oil exports have increased to Asia.
“The more we talk to different countries about it, the more they understand … the rationale for capping prices and some of the risks of not doing so,” according to a senior official.
Oil transport insurance: a thorny issue…. and juicy folder
The American proposal is based “at the start” in terms of the European Union aimed at stopping its imports of Russian oil by the end of the year.
The EU has also moved to ban insurers and reinsurers from covering the shipping of Russian oil to hamper Moscow’s ability to ship crude to its customers.
However …. Washington is asking for an “exemption” from the insurance ban for oil that would be shipped below the price cap, another Treasury official said.
The goal is “to allow Russian oil to flow without Russia reaping the financial benefits of that flow,” the official said. Janet Yellen will visit Japan ahead of the G20 meeting, and South Korea after, where she will discuss stepping up sanctions against Moscow as well as securing supply chains, the Treasury also said.
Our opinion, by leblogauto.com
Business first again and again for Uncle SAM, to be able to open a royal road for his own fuel, to achieve a “balanced” price of oil allowing both to “satisfy” the financial objectives of his oil majors and not to not too much impact the purchasing power of its citizens…. All while trying to seal the accounts of the Russian oil majors…. But preserving those major insurance companies international, moreover American.
All for Ukraine, really?
Washington intends to get its way … and manage to obtain a cap on the price of Russian oil. Stated objective: to ensure that the Kremlin cannot massively finance the war it is waging in Ukraine via its oil windfall. Unless it is a question of making a place in the sun for one’s own production? The graph looks quite edifying…
Be that as it may, according to senior US officials, US Treasury Secretary Janet Yellen will continue her policy of pressure, even “lobbying with her G20 counterparts for a cap on Russian oil prices. By preserving the interest of the insurance giants…