US Treasury Secretary Janet Yellen weaves the canvas for the oil price ceiling. And the G20 of finance ministers underway in Bali is the most suitable scenario. Yellen arrived there after a stop in Japan. Tokyo is in favor of the idea of a cap price but she highlighted fears of Putin’s retaliation that could shut down gas supplies to the island. Yellen has guaranteed that the US will be able to fill a possible shortfall, but the Japanese perplexity is also shared by other chancelleries. The US Treasury Secretary has been working on the draft price cap since April, he has sent his advisers to the capitals of many countries to study the feasibility of the plan which then found the green light of the big names at the G7 in Bavaria.
It is necessary for the project to be effective in bringing the idea to the big Russian energy consumers, China in the first place. Yellen pointed out that the cap price “would also help Chinese and Indian consumers”. But some perplexities have come from Beijing. Yellen’s plan was judged “complicated” by the Minister of Commerce who reiterated the position of his government: “It is in everyone’s interest to cool the situation in Ukraine and not to fuel tensions”.
Another confrontation between Russians and Americans is expected at the G20. Yellen said that the return to “business as usual” is impossible and reiterated that “there is no room for Russia in this forum”, leaving open the option to leave the room when the Moscow delegate speaks.