UK supports US price cap plan to curb Russia’s oil revenues

Britain is backing a plan to cap the selling price of Russian oil, one of the first US allies to publicly back efforts to cut revenue funding President Vladimir Putin’s invasion of Ukraine.

The UK government is confident that a Group of Seven-led price cap can deliver results, Chancellor of the Exchequer Nadhim Zahawi said at a briefing on Wednesday in Washington alongside US Treasury Secretary Janet Yellen. However, he added that more needs to be done, including involving more nations, notably India, Turkey, South Africa and Norway.

The cap will be “most effective when supported by as broad a coalition as possible,” Zahawi said.

The US recently sold the price cap idea to major powers and oil buyers in order to deprive Mr Putin of much-needed funds while keeping prices low when European Union sanctions kick in later this year.

The next round of EU sanctions over the invasion of Ukraine includes a ban on Russian oil and third countries’ use of bloc companies for insurance and financial services. That ban comes into effect on December 5, but US officials fear it would send oil prices significantly higher and bring unexpected gains to Russia.

US Deputy Treasury Secretary Wally Adeyemo traveled to India last week to bring the country’s government and oil buyers on board, but left the country without commitment. Ms Yellen said that “significant progress” had been made towards a G7 price cap.

Brent crude, the global benchmark, has slipped back below $100 a barrel in recent weeks after hitting nearly $140 in March. US officials have warned that if there is no cap, prices could rise. UK supports US price cap plan to curb Russia’s oil revenues

Fry Electronics Team

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