Yellen: US working with allies to limit Russia’s oil revenues

His comments underscore the difficulty the Biden administration and its allies face in trying to cripple the Russian military as it continues its invasion of Ukraine without incurring excessive costs for consumers. Soaring prices at the gas pump have already contributed to the highest US inflation in more than four decades.

The World Bank warned Tuesday morning that the invasion of Ukraine was putting additional pressure on economies around the world and increasing the risk of stagnant growth even in the face of high inflation, a phenomenon called “stagflation”. The global financial institution forecasts that global GDP will grow by 2.9% in 2022 – still healthy by pre-pandemic standards, but well below its projection of 4.1% in January.

“Energy prices are expected to rise 52% in 2022,” the bank said. “Prices are expected to moderate in 2023 as production increases elsewhere, including the United States; however, they will remain much higher than expected, and well above the average for the past five years.

Yellen said oil companies have an incentive to increase domestic production, but also called on Congress to invest in clean, renewable energy to further reduce the United States’ dependence on foreign energy.

“We are part of global oil markets, which are subject to geopolitical influence, and given the global nature of these markets, it is virtually impossible for us to insulate ourselves from shocks like the ones that are happening in Russia and are moving the world oil prices,” she said.

Meanwhile, his department stepped up financial pressure on Moscow in another area on Tuesday by banning further investment by US companies in Russian debt, a blow to the Russian government’s efforts to avoid defaulting on its sovereign bonds.


Politico

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