Moves from Western allies to cap the price of Russian oil will be a benefit to others says US Treasury Secretary Yellen.
- Beijing will benefit from the new price cap mechanism to be imposed in December
- China and other buyers of Russian oil will have more leverage to negotiate lower prices
- “We see the price cap is something that benefits China benefits India, and benefits all purchasers of Russian oil,”
If Russia’s oil was completely removed from global markets the price of remaining oil would skyrocket. Biden would not be happy with this.
With the price cap to proceed from December 5, Yellen looks to have played and won.