The US does not lose hope to agree with China on the price ceiling for Russian oil. By such a step, the US is planning to reduce funds flowing into Russia's war chest and the cost of oil for consumers. However, China keeps buying Russian oil at a cheaper price, taking advantage of the situation in the commodity market.
Not long ago, US Treasury Secretary Janet Yellen discussed the possibility of placing a cap on the price of Russian oil during a virtual meeting with Liu He, the Vice Premier of the State Council of the People's Republic of China. This attempt of Washington to convince Beijing to limit Moscow's oil revenues was more successful. Liu He said that China is ready for further discussions on the issue. Janet Yellen, who is currently on a business trip to Asian countries, stated that the countries would continue to work on this matter.
However, Yellen acknowledged that the cap should be high enough that Russia could make a profit by producing and selling oil. She also believes that concerns that Russia could stop production are groundless. Such a response from Russia does not make much sense, Yellen assumed. So, the proposed ceiling will limit output but not hurt it significantly.
