Countries Nearing Agreement on Russian Oil Pice Cap, Treasury Official Says

The U.S. is confident that world leaders will agree to a price cap on Russian oil ahead of the Dec. 5 cap start date, Deputy Treasury Secretary Wally Adeyemo said during a Dec. 1 event hosted by Reuters. Adeyemo suggested the U.S., the G-7 and the EU are close to an agreement that would prohibit a range of shipping services related to the transport of Russian oil being traded above a certain price (see 2211230047).

“My view is that we're going to get this deal done,” Adeyemo said. “Because what we've seen over time is that each time that Europe has faced a choice between imposing more costs on Russia and not doing so, they've done it.”

The EU this week proposed a price cap on Russian oil at $60 per barrel with a review every two months, Reuters reported Dec. 1. That proposal came one week after G-7 nations floated a price cap of $65 to $70 per barrel, the report said, but Poland, Lithuania and Estonia “refused” to back that cap because Russian oil was already trading lower than that price.

Adeyemo said he thinks Europe is “moving towards implementing a price cap,” adding that the numbers that have been suggested are “in the range of prices that we've been talking about for a while.” Those price ranges “will put us in a position where Russia's revenues come down while we're ensuring that people get access to reliable, cheap energy going forward.”