This measure would have the double advantage of reducing Moscow’s income and reducing inflation, defends the American Secretary of the Treasury, Janet Yellen.
The United States is talking with its allies to further restrict Russia’s oil revenues by capping the price of its crude oil, US Treasury Secretary Janet Yellen said Monday during a visit to Canada. “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.“said Janet Yellen at a press conference.
Read alsoEuropean embargo on Russian supplies fuels oil surge
“We are talking about price caps or a price exception that would expand and strengthen recent and proposed energy restrictions“, imposed by the United States and its allies, “which would lower the price of Russian oil and squeeze Putin’s income while allowing more oil to reach the world market“, she explained. A price capwould prevent collateral effects on low-income and developing countries struggling with high food and energy costs“, she also assured.
Fight against inflation
Janet Yellen traveled to Canada to strategize with local Deputy Prime Minister Chrystia Freeland on how the two countries will continue to tackle the Ukraine crisis, tackle runaway inflation, strengthen chains global supply chains and securing critical minerals.
Read alsoEurope will cut off 90% of Russian oil from the start of 2023
Both agreed that managing inflation was primarily a matter for central banks, but said governments could eventually adopt targeted measures to relieve Americans and Canadians facing purchasing power problems, particularly on the food and fuel.
SEE ALSO – Washington welcomes the European embargo on Russian oil