Impact of Biden administration's sanctions on Russian oil sales
Deputy Treasury Secretary Wally Adeyemo stated that Russia will still be able to sell their oil under the newest round of sanctions by the Biden administration, as they haven't banned Russian oil to avoid energy cost increases.
Key Points
- Price cap on Russian oil implemented to reduce Russia's revenues
- Administration's goal is to further reduce Russia's energy revenues
- Focus on targeting Russia's largest shipping company
Pros
- Reducing Russia's revenues from energy
- Avoiding an increase in energy costs for the rest of the world
Cons
- Russia will still be able to sell their oil, albeit making less money
- Potential limited impact on Russia's economy