The US administration believes that Russia has increased oil revenues around the world, Washington aims to reduce them. This was announced on June 14 by the First Deputy Secretary of the Treasury of the United States Adewale Adeyemo at a Senate Appropriations Committee hearing.
“We know that today Russia is selling less oil in terms of barrels than before the invasion. [на Украину], but due to rising prices, it can make more profit. Therefore, our goal is to reduce the level of income [России от нефти]despite the fact that countries can continue to buy Russian oil,” Adeyemo said.
According to the Deputy Minister, the countries, “although they are buying [нефть] at a discount, but due to the fact that today the price of oil in general has risen, they pay more for Russian oil than Russia earned” before the start of the military special operation in Ukraine.
He added that European countries, as well as India, China, the Republic of Korea, Turkey and Japan continue to buy oil from Russia.
“Now we are in a situation where our goal is to find ways to limit Russia’s oil revenues, in part because one of the problems with oil is that you don’t always know where it comes from. Some of these countries may know that the oil they receive comes directly from Russia. But what we have seen in the context of other sanctions programs is that countries, as soon as sanctions apply to energy sources, try to hide where these energy sources come from,” said the Deputy Minister of Finance.
Adeyemo admitted that Russian oil could flow to the US, despite the March ban.
“I am paying increasing attention to what we can do not only to stop the flow of Russian oil to our country and other countries that are part of our alliances, but also how to reduce the revenue that Russia receives,” Adeyemo said.
He added that the US needs to make sure that the measures they take “do not drive up the price of oil” and American consumers do not incur additional costs. The deputy minister also stressed that he did not know about companies that would deliberately help Russia bypass US sanctions.
Former Deputy Prime Minister of the Russian Federation Alexander Novak said that Russia plans to restore oil production as much as possible by the end of June after its fall in March and April against the backdrop of sanctions. He admitted that by the end of 2022, production could drop to 480-500 million tons from 524 million tons in 2021. Minister of Finance of the Russian Federation Anton Siluanov stated that Russia in 2022 could lose up to 17% of oil production due to sanctions.