The United States, the UK and other allies want Russia to earn less from selling oil. That is why they are looking at introducing a maximum price together with other countries, reports US Treasury Secretary Janet Yellen.
The revenues from the sale of fossil fuels, such as oil and gas, are an important means for Russia to help finance the war against Ukraine. Therefore, for example, the US and Canada decided not to buy Russian oil anymore.
EU countries have also agreed to ban oil from Russia by the end of this year. Exceptions have been made for some countries, because they still need the oil after this year.
Nevertheless, in order to reduce Russia’s revenues, 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. What that should look like concretely is not mentioned.
It is not yet certain that the measure will be introduced. The countries concerned are still holding talks with each other on this, with room for Ukraine’s input.
According to the International Energy Agency (IEA), Russia currently still earns 19 billion euros a month from oil sales. Although the West has been declining less and less recently, higher sales to China and India are on the other hand. However, Russia must sell the oil to those countries at substantial discounts.