(MENAFN) In an interview with CNBC, former US Treasury Secretary Steven Mnuchin opposed the Group of Seven (G7) plan to control the price of Russian oil.
The measure, which is due to be executed early next month, is “not only not feasible, I think it’s the most ridiculous idea I’ve ever heard,” Mnuchin stated.
The former official asserted that “the market is going to set the price. So, if you put sanctions on at higher prices, in a way you’re just making the situation worse.”
The G7 countries, which include the United States, Canada, the United Kingdom, Germany, France, Italy, and Japan, had already agreed to put a fixed price cap on Russian oil. The law goes into effect on December 5. While the exact price is unknown, sources suggest it will be approximately $60 per barrel. Brent crude, the global oil benchmark, is now trading at roughly $86 per barrel.
Western corporations will be barred from providing some services for shipments of Russian oil acquired at a price higher than the ceiling, according to the plan. Insurance and payment facilitation are among the services offered. The Washington-proposed method is meant to reduce Russia's earnings from energy exports, which the West believes Moscow uses to support its military campaign in Ukraine.
Meanwhile, Moscow has expanded oil supplies to non-Western nations, mainly China and India, in recent months by giving discounts to secure buyers.
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