US Treasury Secretary: Price Cap Mechanism Is Designed to Increase Russian Oil Supplies to World Market

US Treasury Secretary Janet Yellen explained that the mechanism of price restrictions under discussion is designed to increase the supply of Russian oil to the world market, regardless of Western sanctions.

According to the minister, the initiative is being actively developed by the United States and its allies, which are facing record inflation after a complete or partial refusal to import energy resources from Russia.

“This is about a price cap or exemption that will lower the price of Russian oil and reduce Putin’s income while allowing more oil to enter the market,” Yellen said during a visit to Canada.

He added that the mechanism would “expand and intensify the energy restrictions recently introduced or proposed in Europe, the US, the UK and elsewhere.” Yellen explained that the price ceiling, for example, would allow European companies to continue to supply Russian oil.

“You can interpret this as an exception to this ban,” she said. When asked when the new mechanism would be approved, she replied: “We are working hard on it. Be ready. We are very active in working with our partners.”

Western countries have imposed sanctions against the Russian Federation because of Ukraine. Russian President Vladimir Putin in this regard said that the policy of containment and weakening of Russia is a long-term strategy of the West, and sanctions have dealt a serious blow to the entire global economy. Putin added that the United States and the European Union had failed in their obligations to Russia by freezing its foreign exchange reserves.

Source: RIA Novosti

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