US Senators Seek To Enforce Cap On Russia Oil Prices Through Secondary Sanctions - Report

WASHINGTON (Pakistan Point News / Sputnik - 20th September, 2022) Two US senators are proposing legislation that would press the Biden administration to enforce a cap on Russian oil prices through secondary sanctions, Bloomberg reported on Tuesday.

Under the bipartisan proposal sponsored by Democrat Senator Chris Van Hollen and Republican Republican Pat Toomey in order to cut off energy revenue funding Russia's special operation in Ukraine, the cap would be imposed in March and reduced by a third each year until reaching a break-even price within three years.

The senators propose to enforce the cap through secondary sanctions on foreign companies involved in the sale or transport of Russian oil, including financial institutions such as banks, insurance and reinsurance companies, and brokerages. Countries that increase their purchases of Russian oil beyond pre-conflict volumes would also face secondary sanctions.

However, the Biden administration previously said that secondary sanctions would create tensions with countries like China and India that do not support a cap and have increased their purchases of Russian oil.