The imposition of sanctions without limiting the price of Russian oil could lead to an increase in the price of raw materials by 40% – up to $ 140 per barrel.
The global price of oil could rise by 40% to about $ 140 per barrel unless a cap on the price of Russian oil is passed, plus an exemption from sanctions to allow deliveries below the threshold. that. This was reported on July 12 by Reuters, citing an official with the U.S. Treasury Department.
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Notably on Tuesday, July 12, U.S. Treasury Secretary Janet Yellen will discuss the implementation of the measure to limit prices and develop the global economy with Japanese Treasury Secretary Shunichi Suzuki.
As the agency’s interlocutor clarified, the purpose of the regulation is to set prices at a level that will only cover Russia’s marginal cost for oil production.
“For Moscow to be interested in continuing oil exports, but not at a high level to allow it to fund a war against Ukraine,” he stressed.
Japanese officials have expressed concern about setting the price cap too low, but have not ruled out a potential range of $ 40 to $ 60 per barrel.
It noted that Yellen used his first trip to the Indian-Pacific region as Treasury Secretary to build support for the proposed U.S. limit on Russia’s oil price. In addition, he will clarify the issue of its effectiveness if India, China and other buyers of Russia’s cheap oil do not join the measures.
As you know, at the summit in June, the G7 countries and the European Union agreed to study the issue of imposing restrictions that would reduce Moscow’s oil revenues and destroy its military budget. Details of the initiative are not yet known and are in the process of being negotiated, Reuters wrote.
Washington has proposed a “price exemption” that would remove the ban on marine insurance for orders below the agreed price.
At the same time, American experts have calculated that the imposition of penalties without price exclusion could lead to a significant increase in crude oil prices: up to approximately $ 140 per barrel from the current $ 100 per barrel.
Russia had previously reportedly managed to avoid the worst recession scenario due to growing oil production and exports, weakening the impact of US and European sanctions in response to the war in Ukraine.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.