US and allies reportedly working to defeat ‘Russian military machine’ and lower oil price – Reuters


Japanese Finance Minister Shunichi Suzuki shakes hands with US Treasury Secretary Janet Yellen in Suzuki’s office in Tokyo on July 12, 2022. (Photo by Kazuhiro NOGI / AFP)

picture by AFP

The United States and its allies are working to design new measures to defeat the “Russian military machine” and prevent oil and gas prices from rising to a level that could threaten the global economy, The Associated reported. Press.

The most essential source of the Kremlin’s financial income is oil. It helps keep the Russian economy afloat despite the export ban, sanctions and Central Bank asset freeze. America’s European allies plan to follow the steps of the Biden administration and take steps to stop the use of Russian oil by the end of 2022. The goal is to create an alliance of buyers to control Russian oil prices.

G7 leaders recently agreed to back a price cap for Russian oil, which would likely mean participating countries would agree to buy oil below market price.

Thus, the main idea is to reduce the price of oil for consumers and help stop the war in Ukraine. US Treasury Secretary Janet Yellen is currently visiting Asia and is focusing on this issue in meetings. Following her visit to Japan on July 12, she said in a joint statement with her Japanese counterpart that the possibility of such restrictions had been discussed.

However, to realize this idea, India and China must be involved. A reminder that these two countries support Russia, even since the full-scale invasion of Russia.

If these countries are not involved in the realization of this plan, Russia will receive from these countries the same money that it currently receives. The United States believes it is realistic to agree with these countries because Russian oil consumers should be interested in buying oil at lower prices.

The European Union plans to introduce a new sanctions package against Russia for its war in Ukraine in the coming weeks.

Although discussions on Russian oil price capping mechanisms continue, they are unlikely to be implemented any time soon. Some EU countries also proposed to start imposing sanctions on Russian gas, but the majority of EU member states did not support it.

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