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In an interview with FRANCE 24, US Deputy Treasury Secretary Wally Adeyemo discussed the sanctions imposed on Moscow in the wake of Russia’s invasion of Ukraine. “The sanctions are working and that’s why Russia is working so hard to evade them,” he said. Adeyemo also discussed the cap on the price of Russian oil announced by the G7. He confirmed that this “will happen” on December 5 and predicted a knock-on effect among other buyers of Russian oil, such as China and India, who will likely demand lower prices as a result.
“Since the United States and Europe will no longer buy Russian oil as of December 5, this oil will now be available to developing countries and emerging market economies, hopefully at a far lower price,” Adeyemo explained.
Turning to the issue of global inflation, the US deputy treasury secretary reacted to French Finance Minister Bruno Le Maire calling the Inflation Reduction Act, which was passed in the US in August, “a major problem”. European industries fear that the bill, which gives a tax credit for each eligible component produced in a US factory, will take away potential investment from the continent. Adeyemo insisted that the legislation “creates benefits for governments around the world”.
He added: “Much of this has to do with how the bill and the legislation will be implemented and we’re still working through implementation in the United States.”