The Group of Seven countries decided to create a cartel to control the price of oil from the Russian Federation

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The Group of Seven countries decided to create a cartel to control the price of oil from the Russian Federation
The Group of Seven countries decided to create a cartel to control the price of oil from the Russian Federation
20 May, 12:13PoliticsPhoto: 1MI
Western countries may create a cartel of oil buyers from Russia to control the increase in fuel prices, US Treasury Secretary Janet Yellen said following a meeting with colleagues from the G7 countries.

According to The Wall Street Journal, a price threshold will be set that will allow Western states to reduce Russian budget revenues from oil sales without causing "too much burden on the global economy." However, such a measure can cause “stagflationary shocks”.

“For this, a large cartel is needed, perhaps the EU alone will not be enough”. The idea of applying sanctions, secondary sanctions, arose. An alternative approach could be the idea of tariffs instead of price caps, Yellen said.

Last month she urged not to rush to declare an embargo on Russian oil, since this step will significantly affect European countries, and the Russian economy is unlikely to have an impact.

Let us remind you that the EU countries have not been able to agree on the adoption of the sixth package of anti-Russian sanctions, involving an oil embargo. Hungary is against limiting the supply of Russian oil. At the same time, Bulgaria also depends on oil from the Russian Federation by almost 100%. In general, in the event of their refusal from energy carriers from the Russian Federation, Bulgaria, the Czech Republic, Hungary and Slovakia will face negative consequences. The head of European diplomacy, Josep Borrell, previously reported that countries continue to discuss this issue.

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