US senators proposed to introduce secondary sanctions for oil from Russia

Two senators are developing a corresponding bill. They believe that the threat of secondary sanctions ensures compliance with restrictions on Russian oil supplies and a price ceiling. At the US Treasurydo not agree with their opinion

Senators Chris Van Hollen (Democratic) and Pat Toomey (Republican) are developing a bill to sanction foreign companies that facilitate the trade in Russian oil, as well as against countries that increase its purchases, BLOOMBERG writes, citing a statement by politicians.

They explained their initiative by the need to cut Russian budget revenues from the sale of energy resources and thus “cut off funding” for the special operation in Ukraine. The senators believe that the measure will contribute to compliance with the Russian oil price ceiling .

The US government takes the opposite view. “I don’t think that secondary sanctions are needed for this measure to be effective,” Deputy Finance Minister Adewale Adeyemo said in an interview with Bloomberg on Sept. 6. In his opinion, the price ceiling is beneficial both for importers and for countries that impose restrictions.

Bloomberg learned that Brazil and South Africa can buy oil from RUSSIA instead of the EU Politics

At the beginning of the month, the heads of the ministries of finance of the G7 countries agreed to introduce a price ceiling for Russian oil. The G7 states also decided to develop mitigation mechanisms that would give the most vulnerable countries access to energy resources, including Russian ones.

On December 5, the United States will impose a ban on sea transportation of Russian oil, and on February 5, a ban on all other types of transportation will come into force. Countries and companies that pay no more than the maximum price for oil from Russia will be able to continue to receive fuel. Buyers will be required to provide documentation to prove that the deal complies with the "price exclusion" policy, and those who knowingly provide false information may be held liable for sanctions violations.

On the same day, a ban on the supply of Russian oil by sea to the EU countries will also come into force.

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The Kremlin sees an oil price ceiling as an absurd measure and warns that it will destabilize oil markets. On September 7, President Vladimir Putin said that Moscow would not supply energy to countries whose authorities would make political decisions that interfere with the execution of contracts.