26 October (Reuters) – US officials are being forced to scale back a plan to impose a cap on Russian oil prices as investors have grown skeptical and risks in financial markets have increased, Bloomberg News reported on Wednesday.
The United States and other G7 countries are developing a price cap on Russian oil shipments by sea to cut Russia’s oil revenues, while encouraging Moscow to keep pumping oil. Continue reading
The United States and European Union are likely to settle for a more loosely monitored cap at a higher price than initially envisaged, with only the Group of Seven (G7) nations and Australia committed to adhering to it, it said in the report citing people familiar with the matter.
South Korea has also privately told the G7 that it plans to comply while G7 officials try to get New Zealand and Norway on board as well, the report added.
Officials involved with the plans are discussing a cap at the upper end of the $40 to $60 per barrel range and above, which was spearheaded internally and externally by US Treasury Secretary Janet Yellen in an earlier iteration of the US plan, the US said point of sale .
“The White House and administration remain on course to introduce an effective, strong price cap on Russian oil, in coordination with the G7 and other partners,” White House National Security Council spokeswoman Adrienne Watson said in a statement to Bloomberg .
Deputy Treasury Secretary Wally Adeyemo said this month that the United States is beginning to see results as the G7 discusses a Russian oil price cap.
Reporting by Juby Babu in Bengaluru; Editing by David Gregorio
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