{"id":2060507,"date":"2023-10-09T13:25:02","date_gmt":"2023-10-09T17:25:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-likely-to-step-up-russian-oil-price-cap-enforcement-as-efficacy-wanes-yellen-says\/"},"modified":"2023-10-09T13:28:29","modified_gmt":"2023-10-09T17:28:29","slug":"us-likely-to-step-up-russian-oil-price-cap-enforcement-as-efficacy-wanes-yellen-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-likely-to-step-up-russian-oil-price-cap-enforcement-as-efficacy-wanes-yellen-says\/","title":{"rendered":"Yellen: US to increase enforcement of Russian oil price cap as effectiveness declines."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-likely-to-step-up-russian-oil-price-cap-enforcement-as-efficacy-wanes-yellen-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2060507&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The United States to Strengthen\u2064 Enforcement of Russian Oil Price Cap<\/h2>\n<p>The United States is gearing up to enhance measures to enforce the price cap on Russian oil, as signs indicate that the\u200c policy aimed at\u200d limiting Moscow&#8217;s \u2062energy profits may not be as effective as\u200c anticipated. Treasury Secretary \u200cJanet Yellen revealed in an interview with the \u2062Wall Street \u200dJournal that additional steps are &#8220;very likely&#8221; to be taken to enforce the $60-per-barrel limit on Russian crude exports, set by the G7-led price cap coalition. Yellen \u2063emphasized the seriousness of abiding by the cap and ensuring market participants are aware\u200c of the enforcement. \u200d <\/p>\n<blockquote>\n<p>&#8220;We are\u200c looking at enforcement \u200bvery carefully, and we want to \u2064make sure that market participants are aware we take this price cap seriously, and, \u2063to the extent Western services are used, we \u200dmean business about abiding \u2064by \u200dthe cap,&#8221; she said.<\/p>\n<\/blockquote>\n<p>A senior Treasury spokesperson confirmed separately to the Washington Examiner \u200cthat the \u200bU.S. will push for additional enforcement actions. The coalition compliance and enforcement\u200c authorities \u2064are committed to addressing intentional violations of the \u2064price cap. The specific mechanisms being considered were not disclosed by Yellen\u200d or the Treasury\u200b spokesperson.<\/p>\n<p>In\u200d September, Russia&#8217;s flagship\u200b Urals-grade crude was sold at an average price of $85 per \u2063barrel, $25 higher than the capped price\u200b agreed upon by the price cap coalition. Furthermore, a significant amount of Russian crude is still being transported on Western ships. According\u2063 to data compiled \u200cby \u200bthe Center\u200c for Research on Energy and Clean Air, 37% \u200bof Russia&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-russian-oil-industry\/\" title=\"The Russian Oil Industry\">fossil fuel exports<\/a> in the seven-day period ending October 1 were sent on ships owned or insured by G7 \u2064or European countries, all of which are\u2063 members of the price cap \u200ccoalition. During this period, Russian fossil\u200b fuel profits amounted to $4.68 \u200cbillion.<\/p>\n<p>Yellen&#8217;s remarks \u2062were made during her trip to Morocco for the annual meetings of the\u200d World Bank and the International Monetary \u200dFund.\u200c The enforcement of the price \u2063cap is expected to be a\u200c key topic of discussion at the Eurogroup&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pinkerton-bidens-big-shift-on-climate-change-is-the-great-reset-by-stealth\/\" title=\"Pinkerton: Biden\u2019s \u2018Big Shift\u2019 on Climate Change Is the \u2018Great Reset\u2019 by Stealth\">finance ministers meeting<\/a> in Luxembourg, where Yellen will be present.<\/p>\n<h3>Challenges and Loopholes<\/h3>\n<p>While the price cap has achieved its goals of keeping Russian barrels on the market \u2063and avoiding the shut-in\u200d of Russian oil, enforcement\u2062 has been \u200da challenge.\u200c The plan lacks effective mechanisms to monitor companies\u2064 and ensure compliance with price \u200ccap-related restrictions. \u2062There\u2063 is \u2062also\u200d a &#8220;shadow fleet&#8221; of illegal \u200dtankers that allow Russia\u2062 to ship oil outside the cap, along with ship-to-ship transfers conducted in Mediterranean ports. Shipping experts estimate that Russian President Vladimir Putin has acquired approximately\u2064 600 off-book tankers in \u200bthe past year, costing at least $2.25 billion. These expenses, along with additional \u2062insurance premiums, could impose up to $36 per barrel in additional costs, reducing \u200cMoscow&#8217;s profit margins.<\/p>\n<p>Yellen recently acknowledged that the Russian price cap may not be as effective as intended, citing the prices and Russia&#8217;s efforts to evade \u2062the cap \u2064through its &#8220;shadow fleet&#8221; as complicating factors. She highlighted \u200dthat Russia has invested significant resources\u200d in providing services for oil exports, expanding its shadow fleet and increasing insurance, which is \u2063not prohibited by the price cap.<\/p>\n<p>The \u200bprice \u200bcap, set at $60 a barrel in December, prohibits companies from coalition countries from\u200d providing maritime services for Russian \u200doil shipments unless the oil\u200b is sold\u2062 below the cap. However, there is a loophole that allows third countries, like India, \u2062to purchase \u200ddiscounted\u2064 Russian crude, refine it, and sell it\u200d back to European buyers at a higher price. India has become the EU&#8217;s largest \u2064supplier of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/emergency-declaration-issued-for-17-states-in-wake-of-cyberattack-on-colonial-pipeline\/\" title=\"Emergency Declaration Issued For 17 States In Wake Of Cyberattack On Colonial Pipeline\">refined petroleum products<\/a> since Russia&#8217;s\u2064 invasion, with\u200d a 57% increase in diesel and jet fuel sent to the bloc in September compared to the previous year.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to read more from the \u200dWashington Examiner.<\/p>\n<p> <\/p>\n<h2> What specific measures does the United States \u200baim to implement in order to strengthen the enforcement of the price cap on Russian \u2064oil exports<\/h2>\n<p><span>  Oup and G20 meetings taking place\u2064 later this month.<\/p>\n<p>The price cap on Russian \u200doil exports was initially implemented by the G7-led coalition in response\u2062 to concerns over Russia&#8217;s aggressive foreign\u2062 policies\u200d and growing energy dominance.\u200b The \u2064aim was to limit Moscow&#8217;s revenue\u200b from oil exports and reduce its ability to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-likely-to-step-up-russian-oil-price-cap-enforcement-as-efficacy-wanes-yellen-says\/\" title=\"Yellen: US to increase enforcement of Russian oil price cap as effectiveness declines.\">fund activities deemed detrimental<\/a> to global security and stability. However, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/amid-dems-aggressive-spending-plans-feds-chief-inflation-measure-posted-biggest-year-over-year-rise-since-1992\/\" title=\"Amid Dems\u2019 Aggressive Spending Plans, Fed\u2019s Chief Inflation Measure Posted Biggest Year-Over-Year Rise Since 1992\">recent data suggests<\/a> that the policy may \u200bnot be having\u2063 the desired impact.<\/p>\n<p>The\u200d gap between the capped \u200cprice and the actual selling price of Russian crude remains substantial, indicating that there are ongoing violations of the price cap. \u200dAdditionally, the fact that a significant portion of Russian crude is still being transported \u200don Western ships demonstrates \u2063a disregard for\u200b the enforcement efforts of the coalition.<\/p>\n<p>The United States, as a leading member of the\u2063 coalition,\u2064 is determined to strengthen the\u2063 enforcement measures and ensure that market participants are fully aware of the\u200b consequences of violating \u2064the price cap. Treasury Secretary Janet \u200cYellen&#8217;s statement highlights the seriousness with which the U.S. government\u200b approaches this issue.<\/p>\n<p>While\u200d the specific mechanisms being considered for \u200dadditional enforcement actions have not\u200d been disclosed, it is clear that the U.S. will push for stricter measures. The coalition compliance and enforcement authorities are committed to addressing intentional\u2062 violations\u2063 and holding accountable those who benefit from disregarding the price\u2062 cap.<\/p>\n<p>The enforcement of the price cap is of particular \u200dimportance considering the substantial profits Russia continues\u200b to generate from fossil fuel \u200bexports. The data\u200d compiled\u2063 by the Center for Research\u2063 on Energy and \u2063Clean Air highlights the\u200c significant revenue accrued by Russia during a seven-day period. These profits contribute to Russia&#8217;s\u200c economic power and ability to pursue its foreign policy objectives.<\/p>\n<p>Yellen&#8217;s remarks during her trip to Morocco \u200cdemonstrate\u200c the U.S. government&#8217;s commitment to addressing this issue internationally. The upcoming Eurogroup and\u200d G20 meetings will provide an opportunity for further discussions and actions to reinforce the price cap enforcement measures.<\/p>\n<p>The \u2064effectiveness of the price cap on Russian\u200c oil remains a \u2063crucial issue\u2062 for global energy security and geopolitical stability.\u200b It is\u2062 imperative that all coalition members unite\u200b in \u200dtheir efforts to enforce the cap and hold accountable those who \u200bundermine its objectives. The United States, with its\u200b economic and political influence, \u2064has a key role to play in ensuring the\u2063 success of these measures. By strengthening the \u2064enforcement of the price cap, the coalition can send a strong message to Russia regarding the \u2063consequences \u200dof its actions and work \u2062towards a more balanced and secure global\u2064 energy market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>increase enforcement measures on the Russian oil price cap. This decision comes as the policy&#8217;s effectiveness in curbing Moscow&#8217;s energy profits falls short of expectations. Treasury Secretary Janet Yellen stated in an interview with the Wall Street Journal that the United States is highly probable to take this action.<\/p>\n","protected":false},"author":1,"featured_media":2060508,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2060507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2060507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2060507"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2060507\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2060508"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2060507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2060507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2060507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}