Cap Russia’s Oil Price Now
A new round of European sanctions set to target Russian oil imports by the end of the year could push energy prices even higher – potentially triggering a global recession. But there is a promising way to avoid this outcome.
WASHINGTON, DC – Though the price of oil has declined in recent weeks, it is still through the roof, filtering through to gasoline prices, and causing economic and political challenges in the United States, the United Kingdom, and Europe. Increased supply from Russia would lower prices, but the revenues from those additional sales would fuel President Vladimir Putin’s war machine.
Adding to the problem is a new round of European sanctions set to target Russian oil imports by the end of the year. Such sanctions could push prices even higher – potentially triggering a global recession.
US Treasury Secretary Janet Yellen has proposed a solution: Allow Russia to continue exporting oil, but impose a cap on the price Russia can charge. This would help keep a lid on oil prices while ensuring that the US and its allies are not funding Russia’s ongoing aggression against Ukraine.