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

Dakar, Jan 20 (Reuters/GNA) – Russia’s war in Ukraine is hitting Africans particularly hard by exacerbating food insecurity and putting an unnecessary drag on the continent’s economy, U.S. Treasury Secretary Janet Yellen said in Senegal’s capital Dakar on Friday.

Yellen said ending the war would be the best thing to help the global economy, but Treasury estimated that a Group of Seven-led price cap on Russian crude oil and refined products to limit Russia’s revenues could save the 17 largest net oil-importing African countries $6 billion annually.

Speaking at the start of a three-country visit to Africa, Yellen said some emerging market countries were saving even more by using the price cap to negotiate steeper discounts with Russia, and Treasury was encouraging others to follow suit.

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. A further cap on Russian refined petroleum products, such as diesel and fuel oil, is due to take effect on Feb. 5.

Yellen said the United States was working with African leaders to mitigate the damage caused by Russia’s “illegal and unprovoked war” in Ukraine, which along with COVID-19 had slowed growth and pushed millions of Africans into poverty and hunger.

Washington provided about $13 billion in emergency aid and food assistance last year, and was now setting up a U.S.-Africa strategic partnership to address the short-term food needs of more than 300 million Africans, Yellen said. It is also helping to build more resilient and sustainable systems for the future.

GNA/ Credit: Reuters