Discussions with US partners and allies to restrict Russia’s energy revenues
“We continue to have productive conversations with our partners and allies around the world on how to further restrict Russia’s energy revenues, while avoiding collateral effects on the global economy,” Ms Yellen said during the meeting. ‘a press conference.
Capped prices or “price exceptions”: several alternatives
“We are talking about price caps or a price exception that would expand and tighten recent and proposed energy restrictions” imposed by the United States and its allies, “which would drive down the price of Russian oil and contract revenues. of Putin while allowing a greater supply of oil to reach the world market,” she explained.
Yellen said a price exception was an effective cap that could be achieved through a mechanism to restrict or prohibit insurance or financing Russian oil shipments above a certain amount.
Avoid rising energy costs for poor and developing countries
“We believe a price exception is also an important way to avoid ripple effects on low-income and developing countries that are struggling with high food and energy costs,” Yellen said. speaking alongside Canadian Finance Minister Chrystia Freeland.
Fight against galloping inflation
Ms. Yellen traveled to Canada to strategize with Deputy Prime Minister Chrystia Freeland on how the two countries will continue to tackle the Ukraine crisis, tackle runaway inflation, strengthen supply chains supply and secure critical minerals.
Both agreed that managing inflation was primarily a task for central banks, but felt that governments could adopt targeted measures to relieve Americans and Canadians facing purchasing power problems, particularly on the food and fuel.
Seeking consensus for next week’s G7 leaders’ summit
Asked if US President Joe Biden plans to seek consensus around a plan dealing with the price of oil at the G7 leaders’ summit in Germany next week, Yellen said: “We are very active, we are actively working on this subject with our partners”.
Our opinion, by leblogauto.com
Scenario to relate to the renewal of the authorization issued by the United States Department of the Treasury for energy-related transactions in order to align its regulations with the timetable for the implementation of the ban on crude oil imposed by the European Union .
The Russia sanctions waiver was originally set to expire on June 24, but has now been extended until December 5, 2022.
This extension “will allow for an orderly transition to help our broad coalition of partners reduce their dependence on Russian energy as we work to restrict the Kremlin’s sources of revenue,” the spokeswoman said at the time. Treasure.
Imports of Russian oil into the United States, however, remain prohibited. It is thus a question of transactions, namely financial operations, most often linked to the dollar and concerning above all oil majors, financial establishments and insurers. It should be remembered that within the framework of the embargo put in place by the EU against Russia, tankers transporting Russian oil to third countries can no longer be financed or insured by European operators within six months, in order to hinder a reorientation of Moscow’s exports.
If the British government, along with its European and American counterparts, demanded that insurance companies stop “protecting” tankers carrying Russian oil, that would be another powerful weapon in Western efforts to pressure Moscow, reported the Financial Times last April.
Sources: AFP, Reuters
to summarize
The United States is currently in talks with its allies to further restrict Russia’s oil revenues. New “solution” envisaged capping Russian oil sales via a subtle but nevertheless effective circumvention method: blocking the insurance or financing of Russian oil shipments beyond a certain amount.
This is what US Treasury Secretary Janet Yellen said on Monday during a visit to Canada.
