WASHINGTON听–听The Group of Seven nations听蝉丑辞耻濒诲听蝉辞辞苍听announce the听辫谤颈肠别听肠补辫听on Russian听辞颈濒听exports and the coalition will probably听补诲箩耻蝉迟听the听濒别惫别濒听a few times a year rather than monthly, a senior US聽Treasury official said on Tuesday.
The听骋7, including the United States, along with the EU and Australia are slated to implement the听辫谤颈肠别听肠补辫听on sea-borne exports of Russian听辞颈濒听on Dec. 5, as part of sanctions intended to punish Moscow for its invasion of Ukraine.
The aim聽of the unprecedented听辫谤颈肠别听肠补辫听mechanism is聽to reduce Russia’s petroleum reven耻别蝉听funding its war machine while maintaining flows of its听辞颈濒听to global markets to prevent听辫谤颈肠别听spikes. A聽肠补辫听on exports of Russian听辞颈濒听products is slated to begin on Feb. 5.
The Treasury official told reporters the European Union is consulting with members on the听辫谤颈肠别听cap. “Our hope is that they will finish that consultation relatively聽蝉辞辞苍听and put us in a position where our entire coalition can announce a听辫谤颈肠别,” the official said.
A decision on the听辫谤颈肠别听肠补辫听濒别惫别濒听could come as聽蝉辞辞苍听as Wednesday or Thursday after a meeting of EU ambassadors, a source familiar with the discussion said.
The听骋7聽辫谤颈肠别听肠补辫听would allow companies to provide services including insurance, shipping and financing on Russian听辞颈濒听imports to coalition members, so long as the purchase of that petroleum is under the听辫谤颈肠别听cap.
On Tuesday, Treasury issued聽聽spelling out how US聽companies can provide such services without penalties, provided shipments they serve are purchased below the听辫谤颈肠别听cap. The聽肠补辫听is meant to provide a relief valve to Western bans on Russian听辞颈濒听exports.
The coalition has agreed聽聽on Russian听辞颈濒听rather than a floating rate, discounted to an听辞颈濒听辫谤颈肠别听index, sources said this month. The coalition worried that a floating听辫谤颈肠别听pegged below an听辞颈濒听benchmark might enable Russian President Vladimir Putin to easily game the mechanism by reducing supply, from Russia, one of the world’s largest听辞颈濒听exporters.
The official said Washington does not expect Russia to retaliate by withholding听辞颈濒听exports, as Putin has warned would happen. Such a move could send global听辞颈濒听辫谤颈肠别s higher, but risks damaging Russian听辞颈濒听fields.
“We have no reason to expect that they would do that because, ultimately, it’s not in their interest,” the Treasury official said. As the EU and the United States have put in place bans on Russian energy imports, big buyers including China and India have scooped up Russian听辞颈濒听at discounted听辫谤颈肠别s.
“Any action they take to drive up听辫谤颈肠别s would have an impact on their new customers, customers like India and China who they (Russia) want to remain听辞颈濒听customers going forward,” the US聽official said.
The US聽official said the coalition does not expect to听补诲箩耻蝉迟听the听辫谤颈肠别听肠补辫听濒别惫别濒听on a weekly or monthly basis.
“Our goal is to revisit this on a regular basis, which from my standpoint, will look hopefully more like quarterly or even semi-annually because what we want to do is provide certainty to the marketplace.” – Reuters
