Despite OPEC+’s agreement to restrict oil production on Wednesday, which has already increased gas prices, U.S. Treasury officials intend to push forward with a cap on the price of Russian oil during this week’s IMF meetings.
At the annual meetings of the IMF and World Bank, which take place from Monday through Sunday in Washington, D.C., Treasury Secretary Janet Yellen and Deputy Treasury Secretary Wally Adeyemo will speak with other international finance ministers about the cap.
The Biden administration is said to have attempted to obstruct the announcement of a 2 million barrel per day output cut by OPEC+, the international organisation that governs oil exporting nations and now includes Russia among its membership.
A senior Treasury official told reporters on Monday that the reduction has no effect on the G-7’s plan to control the price of Russia’s oil in order to prevent it from continuing to fund its war in Ukraine.
“We have been focusing on the price cap for a while. The design and completion of it are still moving forward with our coalition, and they already would have been, the person said.
The price cap was announced by the G-7 finance ministers last month.
The official stated that low- and middle-income countries, who are already suffering from the rise in global energy prices, will be severely affected by higher gas prices as a result of the OPEC+ decision.
Adeyemo will inform member nations about the effects their sanctions have had on Russia’s military supply routes on Friday. According to senior Treasury officials, the Deputy Treasury Secretary will also speak with senior officials from over 20 participating nations, including Canada, the U.K., and the E.U., on how to intensify such efforts.
Yellen intends to urge the coalition to further impede Russian President Vladimir Putin’s access to the money and military hardware required to carry out the ongoing conflict in Ukraine.
India and China, who have held back from openly denouncing Russia’s invasion, called for a diplomatic solution to the conflict after Russia conducted coordinated missile attacks across Ukraine on Monday. Even though they continue to help Russia by purchasing its oil, each nation has made an effort to separate itself from Putin.
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