Treasury Secretary Janet Yellen on Tuesday suggested that the EU could impose a tariff on Russian oil imports as a way to hurt Russian profits before a total embargo on Russian oil.
Yellen met with EU Commission President Ursula von der Leyen in Brussels ahead of a G7 meeting to discuss the EU’s next round of sanctions on Russia. The EU has proposed a phased Russian oil ban that would give most EU nations until the end of 2022 to stop importing the product.
Hungary and Slovakia, two countries heavily reliant on Russian oil, would have until the end of 2023. But Hungary is strongly opposed to the plan and says the EU hasn’t offered a way to offset the economic cost of cutting off Russian oil.
In the meantime, Yellen thinks the EU should take other steps to hurt Russia. “They’re talking about the next year as a time frame and in the meantime it might be possible to combine a phase-out with a price mechanism, but there are a lot of options here,” Yellen said. “It is critically important that they reduce their dependence on Russian oil.”
Treasury officials said that the tariff would have to be high enough to hurt Russian profits but low enough to incentivize Russia to keep exporting oil. The officials said that the idea would be proposed to more European nations at the G7 meeting later this week.
However the EU decides to wean itself off Russian oil will have a severe economic impact on Europe since the continent is heavily reliant on Russian energy. Measures like tariffs also run the risk of Moscow deciding to cut the EU off without notice, which could throw Europe into a serious recession.
The Biden government is illegitimate so any actions they take are illegal!
Sure, that will stop them. But I get your gist. Longing for the return of the Don and four years of revenge. Should make the country great again again.
Four more years of emoluments violations, etc. Just what we need.
Nop, don’t care who runs the show as long as they are not a dimorat.
Anyone but Biden or Trump. Anyone.
Why the problem with only one faction of the one-party state?
Sigh…………….
That’s the perfect approach for oil in general, tax it heavily before banning it’s export and then use entirely. What’s it worth to have a planet that humans can live on?
This is perfect way to bleed people dry of their income. Rich people can easilyvdream such dreams.
Why not first have all wealthy people with private planes and yahts give those up. In fact ban yahts, as those are unoriductive toys costing tens of thousands dollars to fill their tanks. Andvwhat about the obscenely big homes that guzzle energy?
Why make people go back to their offices — since they sucessfuly managed to work from home for two years? Why heat and cool those monstrosities of buildings?
It is all aboutvprofit and flaunting the wealth around. Whike poor will have to take it on the chin to keep the waters clean for yahts and aur clean for planes.
Reality will set in either as an orderly decline in our dependence on fossil fuels, or as a sudden crash. Europe largely does this already, has it impoverished them?
Europe has been impoverished in their own dignified way. Do you know anyone, a middle class family liviny in Europe? For more than two decades standard of living has been slowly deferiorating. No money to improve homes, high percentage if income going to heating and translort costs. High taxes on vehicles, very frugal on food. And all that befotrevwhat is in store for them. Which is bizzare — as the price they paid for Russian president energy was cheap. State mabd energy companies profited by pocketing the difference.
The greed factor kicked in. Why pay Russia anything at all if one can push it into submission and get control over its resources. The idea of replacing. fossil fuel with renewables is a noble one — but born out of greed. Coveting Russian resources pushed the idea of renewables as a means of depriving Rusdia of its traditionaally most stable consumer base. And force Russian corporations into pulling strings in politics to cave in to Westvdemands.
Unfortunately, energy is highly fungible like gold, and markets are rising globally. That is not to say that renewable research and practice is not important. But it should happen in a way all other innovations changed societies. From bottom up, not top down. When states start decreeing “ though dhall go green” even thoug technologies are in infancy, it means hardship on population — not enjoying fruits of scientific development,
This is first one in history that CONSUMER forced the price hike, Not cartel or high demand. States in the West decided to curtail supply and cause price shocks, Byvtaking out Iran, Venezuela and Russia — West is hoping to have a well controlled Middle East supplies, while pushing science forward.
It is artificial. It is state dictated. It will not work without free market. Glibally free market, real competition — risks and rewards. Not possible within state coddled corporations
They can violate the contract by imposing tariffs. Russia can than increase the price to cover tarrifs. Yellen us rather naive. This is not a game for Europeans — but their survival.
There is going to be a backlash in Europe to all of these ordering frim Washington. EU Commission has already been challenged on energy frint.
What’s to keep Germany, Hungary, Slovakia, … from exiting NATO in favor of the Austria model?
Get bankrupt overnight. Greece tried to deal with debt, just negotiste. Guess whst? All credit cards and bankomats stopped working. There is no clause in NATO treaty on remiving members or withdrawing membership. There was a weird clause on France but Sarkozy fixed that.
But with Greece it was a question of exiting EU. And Austria is an EU member outside NATO… ??
I think of Yellen as an economist who has found herself thrust into the middle of a battle that should never have involved the Treasury Department. She’s trying to help Biden using the tools she knows. But I don’t see her as part of the problem. That honor goes to Blinken, Nuland, and Biden himself. (Let’s not forget Hillary, because she was the architect)
None of this motley crew seem to understand that Europe will be 𝐬𝐞𝐫𝐢𝐨𝐮𝐬𝐥𝐲 harmed without Russia’s energy. It matters not a twit if Biden denies Europe access to Russian energy by sanction vs. tariff. They get hurt either way.
I suspect that the Biden Machine (BM) is alarmed by the fact that the EU has found a way to circumvent its own sanctions. European energy companies are swarming to open accounts with Gazprom Bank. That will, as a practical matter, defeat the efforts to freeze Russia’s dollar and euro holdings, and it will further strengthen the Ruble. Yellen’s suggestion is, at its heart, at effort to resume those sanctions by a different means.
Mr Putin cut Europe off now , and give them taste of what life is like relying on the Americans for their energy .