Publish dateSunday 22 January 2023 - 11:07
Story Code : 264118
America called the price cap on Russian oil effective
The US Treasury Secretary stated that the West is seeking to impose two price caps on Russian crude oil, stating that the implementation of this limit has been successful so far.
Afghan Voice Agency (AVA): Reuters reported that US Treasury Secretary Janet Yellen said: Western countries are trying to structure the price ceiling of Russian oil products to ensure the continuous flow of this country's oil, but the markets are complex and it’s possible that things will not go according to plan.
The G7 member states and Australia on December 5 imposed a price ceiling on Russian oil and banned the use of marine insurance, financial and other services provided by Western countries for oil shipments above 60 dollars per barrel.
This action was taken in response to Russia's invasion of Ukraine.
Yellen, who has traveled to Senegal, told reporters: Western countries are finalizing two separate price caps for Russian refinery oil products such as diesel and fuel oil, which are scheduled to come into effect on February 5 along with a ban on diesel imports from the Union.
He added: Of course, creating a price ceiling system for refinery products is more complicated than crude oil, but the entry of these Russian products into the world market is important.
Yellen claimed that the price ceiling policy for Russian crude oil has been successful so far, but the reduction of Russian oil has not been observed in the world markets.
The US Treasury announced on Friday local time that the officials of the G7 group of industrialized countries agreed to revise the price ceiling for oil purchases from Russia.
The Group of Seven intends to set two price ceilings for Russian oil products on February 5th (16th of April), one price ceiling for products such as diesel and another price ceiling for other products such as heating oil.
After the virtual meeting of the Deputy Minister of the Ministry "Wali Adimo" with the officials of the Group of Seven, the Ministry of Treasury of the United States announced: The representatives of the Group of Seven came to the conclusion that due to the different prices set in the market for these products, this policy is a better fit for buying It has refining products.
US Treasury Department officials said that the price ceiling for buying oil from Russia has two goals: reducing oil revenues and ensuring the supply of oil to world markets.
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