Washington is looking for a way to punish Moscow while keeping oil prices from rising, says US Treasury Secretary
The United States is involved in “extremely active” talks with European countries aimed at limiting the revenue Russia can generate by selling oil without interrupting supplies, U.S. Treasury Secretary Janet Yellen said on Tuesday, according to Reuters.
Yellen reportedly told the Senate Finance Committee that U.S. officials are keen to keep Russian oil flowing into the world market to contain prices and avoid a spike that could trigger a global recession.
“But the objective is absolutely to limit the income going to Russia,” she said, adding that there were different ways to achieve this. The Treasury Secretary clarified that such measures could include a possible decision by buyers to group together and cap the prices they paid in Moscow.
Analysts warn of fallout from Russian oil embargo
In March, the United States banned imports of Russian oil, with the EU last week agreeing to a partial blockage by the end of 2022. Washington has also threatened secondary sanctions against countries importing Russian oil.
According to a recent report by the International Energy Agency, Russia has earned 50% more revenue so far this year compared to the same period in 2021. Russian Foreign Minister Sergei Lavrov said on Saturday that Western sanctions would have no effect on the country’s oil. exports and predicted a surge in profits from energy shipments this year.
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