Russian oil price cap could save African countries $6bln annually

U.S. Treasury Secretary Janet Yellen said in Senegal’s capital Dakar on Friday the oil price cap on Russia could save the 17 largest oil importing African countries $6 billion on an annual basis.

Russo Ukrainian War threatens energy security around the world, and implementing a price cap on Russian crude oil aims to stabilise global energy prices and reduce Russia’s oil-based revenues, Yellen added.

The Treasury head said the U.S. and its allies will soon implement a price cap on Russia’s refined oil products as well.

“We are seeing examples of emerging markets saving even more by using the price cap to negotiate steeper discounts with Russia. And we encourage more countries to do the same,” she said.

G7 countries and Australia implemented the oil price cap on Dec. 5, banning the use of Western-supplied maritime insurance, finance and other services for cargoes priced above $60 per barrel.