The US officials are sure that a cap on Russian oil may solve several problems at once. Firstly, this may diminish the Kremlin's revenue. Secondly, US inflation may become lower.
US Treasury Secretary Janet Yellen believes that the implementation of a price cap on Russian oil will lead to lower inflation in the US. “The G7 took a critical step forward in achieving our dual goals,” Janet Yellen stated. The price cap is expected to put downward pressure on global energy prices and significantly reduce Russia’s main source of funding. Notably, the statement of the US Treasury Secretary is published on the department’s official website. What is more, the price cap “is one of the most powerful tools to fight inflation and protect workers and businesses in the United States and globally from future price spikes caused by global disruptions.” The US Treasury Secretary also added that this action will “hasten the deterioration of the Russian economy.” According to the estimates provided by Russia’s central bank in August, this year, the country’s GDP may decline by 4-6%. Next year, the economy is expected to contract by 1-4%.
