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Yellen Heading to Asia to Drum Up Support for Russian Oil Price Cap


US Treasury Secretary Janet Yellen is heading to Asia next week to build support for a Russian oil price cap.

  • Yellen will hold bilateral meetings in Tokyo on July 12-13 before gathering with Group of 20 finance officials in Bali, Indonesia, from July 15-16, followed by a day of talks in Seoul on July 19.
  • "The more we talk to different countries about it, the more they understand the concept that we're putting forward and understand the rationale," a treasury official has said about the proposed Russian oil cap this week.
  • The US and its allies have been touting a price cap of around $40-60/bbl for Russian oil.
  • Japan’s Prime Minister Fumio Kishida said at the start of the week that the price cap could be around half its current market value, a move which Russia deemed as ‘unfriendly’ and could result in Japan losing access to the Sakhalin projects which the country heavily depends upon for LNG imports.
  • There has been a lot of skepticism throughout the industry about the effectiveness of a Russian oil price cap and how it would be implemented especially if China and India, the main buyers of Russian crude, are not on board.

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