China Considers Proposed Price Cap On Russian Oil Exports

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United States has commenced a lobby for select Asian countries with the proposal of capping the of Russian oil. US treasury secretary, Janet Yellen, who is leading the lobby, confirmed to Wall Street Journal yesterday that she held a virtual meeting last week with China.

Yellen is on tour of Asia with stops in Japan, South Korea, and Indonesia this week to seek support for the U.S. idea of capping Russian export crude oil prices. 

The envoy first discussed the idea of a cap on Russian oil with China during an online meeting with Chinese Vice Premier Liu He last week, the secretary told the WSJ.

“They listened and were prepared to have further discussions with us about it,” Secretary Yellen told the Journal. China, the world’s largest crude oil importer, is a major importer of Russian oil, too.

Last week, tanker-tracking data showed that China likely imported another 2 million barrels per day (bpd) of discounted Russian crude oil in June after bringing in around the same record amount in May.

This kept Russia as China’s top oil supplier ahead of Saudi Arabia for a second consecutive month.  After their summit in Germany last month, the leaders of the G7 group of the world’s leading industrial nations invited all importing countries to consider a cap on the of Russian oil.

The capping on Russia is part of the measures being adopted by European Union to put pressure on Russia to rescind its decision to invade Russia

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