The US, UK and other allies want Russia to earn less from oil sales. That is why, together with other countries, they are considering introducing a maximum price, reported US Treasury Secretary Janet Yellen.
Revenue from the sale of fossil fuels, such as oil and gas, is an important way for Russia to help fund the war against Ukraine. This is why, for example, the United States and Canada have decided to no longer buy Russian oil.
EU countries have also reached agreements to ban oil from Russia by the end of this year. Exceptions have been made for some countries, as they will still need oil after this year.
In order to reduce Russia’s income, the countries want to influence the price of oil. According to Yellen, this can be done by limiting or even prohibiting the insurance and financing of oil transport above a certain amount. It is not specified what this should look like.
It is not yet certain that the measure will be implemented. The countries concerned are still in discussions on this subject, with room for maneuver for Ukraine as well.
According to the International Energy Agency (IEA), Russia currently earns another 19 billion euros per month from oil sales. The West has been declining less and less lately, but this is offset by higher sales to China and India. However, Russia must sell the oil to these countries at significant discounts.