The price cap mechanism on Russian oil that is being developed by a US-led coalition is designed to be flexible to meet the coalition's goals, US State Department Chief Economist Emily Blanchard said on Friday
WASHINGTON (Pakistan Point News / Sputnik - 03rd December, 2022) The price cap mechanism on Russian oil that is being developed by a US-led coalition is designed to be flexible to meet the coalition's goals, US State Department Chief Economist Emily Blanchard said on Friday.
"The oil price cap mechanism is deliberately flexible, so that if the goals are not achieved, then the level of the cap can be adjusted over time," Blanchard said during a press briefing. "We care about, not the tool itself, the price cap, we care about the objectives, the goals that the price cap is designed to achieve."
Blanchard also said the goals of the price cap are to reduce Russia's revenues while avoiding a global energy market shock.
Earlier on Friday, US media reported that the European Union reached an agreement on a $60 per barrel price cap on Russian oil. The agreement reportedly provides for a review mechanism to keep the price cap at 5% below market value.
