Acting US Treasury Under Secretary for Economic Policy Eric Van Nostrand said during a speech at the Brookings Institution (Washington) that the second stage of restrictive measures “will send a clear signal that Russia will have a choice of two expensive options.”
As such, a senior American administration official indicated Moscow’s reduction in oil prices in order to sell it within the limits set by the West, or face a more costly option for it to trade with countries outside the G7. This was reported today, October 17, by the Voice of America* (foreign media recognized as a foreign agent in the Russian Federation).
“Our approach is aimed at forcing Russia to make difficult choices,” Nostrand said. “They can comply with the limit we set and sell energy at a significant discount, or they can invest huge amounts of money in the shadow fleet. Such investments contribute to the growth of Russia’s budget deficit: by purchasing tankers, it is more difficult for the Kremlin to buy tanks.”
Last week, the US Treasury Department imposed sanctions on two companies and blocked the property of two ships carrying Russian oil at prices exceeding the established limit.
In December 2022, the United States, other G7 countries and Australia banned the purchase of Russian oil at prices above $60 per barrel if it is supplied by sea. Companies from the countries initiating the sanctions were prohibited from transporting Russian oil and insuring tankers that transport Russian oil products by sea at prices exceeding $60 per barrel.
However, the established price ceiling turned out to be “leaky,” which is increasingly recognized in Western capitals. Russia managed to withdraw most of its oil exports from under the price ceiling of $60 per barrel, the British Financial Times (FT) indicated on September 25, citing data from the analytical company Kpler. Thus, in August, almost three-quarters of all seaborne oil shipments from the Russian Federation were carried out without Western insurance, which is designed to help comply with the price ceiling. This means that Russia “is likely to benefit greatly from the continued rise in oil prices,” the FT noted.
*An organization performing the functions of a foreign agent
2023-10-17 05:05:00
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