On Tuesday’s broadcast of Bloomberg’s “Balance of Power,” Deputy Treasury Secretary Wally Adeyemo stated that the price cap on Russian oil will help countries like China that are still buying Russian oil and not taking part in the price cap by putting them “in a better position to negotiate lower prices with Russia.” Which will undercut Russia’s oil revenues.
Host David Westin asked, “There are some nations that conspicuously are not participating in the sanctions, and I’ll name just three of them: India, Indonesia, and China. Does the price cap work if those countries are still willing to buy Russian oil? Won’t it just redirect it to those nations?”
Adeyemo answered, “So, the reason the price cap works, even if they don’t necessarily join the coalition is because, ultimately, we share the same incentives. All three of those countries want to pay as little as possible for Russian oil.