The U.S. Treasury Department said the U.S. Treasury Department is considering additional options, including tariffs and price caps on Russian crude oil imports, to prevent a possible increase in global energy prices caused by the embargo on Russian crude oil.
According to the Wall Street Journal (WSJ) on the 17th (local time), U.S. Treasury officials said, “At this week’s G7 finance ministers’ meeting, European countries are considering imposing tariffs on Russian crude oil as a more expeditious measure than a complete embargo on Russian crude oil. We plan to propose.”
Ahead of the G7 finance ministers meeting in Germany, finance minister Janet Yellen, who is staying in Brussels, Belgium, was concerned that the EU embargo on Russian crude oil might significantly boost oil prices worldwide.
According to officials, tariffs might be levied ahead of the oil embargo that will begin in many EU countries at the end of the year. The US sees tariffs as having a more immediate impact on the revenues Russia gets from oil sales.
It is expected that Europe will be able to purchase Russian crude oil while at the same time reducing price pressure on global energy markets and reducing Russian imports from oil sales.
The EU is pushing for a phased embargo on Russian oil as part of sanctions once morest Russia following Russia’s invasion of Ukraine, but it is facing resistance from Hungary within the EU.
It proposes a phased oil embargo that bans the import of Russian crude oil within six months and the purchase of Russian refined products by the end of this year, and puts a grace period in Slovakia and Hungary, which are highly dependent on Russian crude.
But Hungary has opposed the embargo, saying it would have a devastating effect on its economy and would require more time and EU funds in return for assistance.
U.S. Treasury officials said the action proposed by the United States would be designed to put Russian oil into the market but limit the flow of money into Russia.
Earlier, Yellen warned last month that the EU must reduce its dependence on Russia’s energy resources, but a full ban might do more harm to the global economy, warning a wide-ranging ban on Russia’s energy imports.
The EU Commission declined to comment on the US proposal, but Commission President Ursula von der Leyen said on Twitter following meeting Yellen that the EU and the US would work closely on sanctions.
However, some predict that it is uncertain whether the European Commission will accept the US proposal by being stubborn regarding the oil embargo.
The WSJ said, “With the oil embargo on hold, the U.S.’s push for temporary measures is likely to further complicate the EU’s already difficult discussion.”
An EU diplomat reacted lukewarmly, saying, “A phone call from the US and a close relationship with Hungary would be more helpful than floating around with new ideas.”
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