United States and its allies must  reduce Russian oil revenue

• The European Union, which is largely dependent on Russia, is preparing to gradually implement a boycott beginning at the end of 2022.
• Adeyemo said before a U.S. Senate Appropriations subcommittee that since Russia invaded Ukraine in late February,
• In order to minimize its gain from higher crude prices, the United States is debating with its European and Asian allies
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According to U.S. Deputy Treasury Secretary Wally Adeyemo, Russia’s oil revenues have probably increased despite fewer crude shipments, and the United States and its allies must find measures to lower Moscow’s oil revenue, maybe by capping prices.

Adeyemo said before a U.S. Senate Appropriations subcommittee that since Russia invaded Ukraine in late February, lower production and export volumes have been countered by higher oil prices.

In order to minimize its gain from higher crude prices, the United States is debating with its European and Asian allies how to set a limitation on the rates paid for Russian crude, according to Adeyemo.

However, he refrained from going into specifics about how those negotiations were going, stating that such information would be saved for a secret briefing for senators.

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Adeyemo explained that if anything, Russia is directly profiting from the higher prices brought on by its own aggressiveness in Ukraine. “So the idea is to make sure that you limit the price that they are able to get from selling their crude moving forward,” he added.

The European Union, which is largely dependent on Russia, is preparing to gradually implement a boycott beginning at the end of 2022. The United States has already prohibited the purchase of Russian energy.

When asked why Washington hasn’t fully embargoed trade with Russia, Adeyemo responded that given the minimal trade between the two nations, such a measure would only have “a marginal impact at most” on Russia’s economy.

No broader move toward secondary penalties against nations and businesses that are still doing business with Russia was indicated by Adeyemo. However, he said that certain businesses were being targeted, including those that provided boat maintenance for Russian oligarchs who were subject to sanctions.

The Treasury was attempting to increase non-financial enterprises’ awareness of the effects of breaking sanctions. Financial organisations are quite experienced in adhering to sanctions and are aware of its extent, but other service providers and real estate companies are not, according to him.

In order to prevent the use of digital assets to circumvent sanctions, Adeyemo also stated that he intended to collaborate with Congress to increase regulatory authority over cryptocurrency markets and exchanges.

“I have my doubts that it’ll ever be a mainstream currency but I do think that it’s going to be used by all kinds of actors, including some people who want to illicitly move money,” Adeyemo said of cryptocurrency.

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