United States, IO – United States (US) Treasury Secretary Janet Yellen said failure to limit Russian oil prices would hurt the global economy. According to her, if the price cap is not implemented, the surge in global oil prices will be inevitable.
“Without a price cap, we face the threat of a global energy price spike if the majority of Russian energy production gets shut in,” Yellen said, as reported by Kompas, Thursday (1/9).
Oil is the main pillar of Russian financial revenue which has managed to keep its economy afloat despite export ban, sanctions and asset freeze.
According to US Treasury officials, limiting oil prices is expected to reduce Russian revenues, and price restrictions will encourage the country to continue producing. World leaders fear that if Russia limits its energy supply in retaliation of this policy, a global oil surge will be inevitable.