Former President Donald Trump’s Treasury Secretary criticized the Biden administration and the Group of Seven Nations (G7) plan to place a price cap on Russian oil sales, according to CNBC.
G7 countries, including the U.S., the U.K., Germany and Japan, will impose a price cap on Russian crude oil Dec. 5 in order to reduce Russian energy revenues that are helping fund its invasion of Ukraine, CNBC reported. Mnuchin said the G7’s plan was “not feasible” and “ridiculous” because the price of oil will be set by the market instead of the G7 price cap which will help Moscow evade sanctions.(RELATED: ‘Discourage Investment’: Clinton Treasury Secretary Bashes Biden’s Windfall Oil Tax Plan)
“I think it’s the most ridiculous idea I’ve ever heard,” Mnuchin told CNBC during a panel at the Milken Institute’s Middle East and Africa Summit. “But look, a price cap, 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, in my opinion.”
GARMISCH-PARTENKIRCHEN, GERMANY – JUNE 26: G7 leaders pose for a group photo on the first day of the three-day G7 summit at Schloss Elmau on June 26, 2022 near Garmisch-Partenkirchen, Germany. (Photo by Stefan Rousseau – Pool/Getty Images)
The former Treasury secretary also said that a price cap and other sanctions could be ineffective as countries outside of the G7 are buying Russian oil, according to CNBC. China and India, two nations that will not participate in the price cap scheme, have been buying significant amounts of Russian oil as U.S. and European Union sanctions have reduced Western imports of Russian energy products.
“I think the problem now is that there’s limited options … there’s parts of the world that are now buying Russian oil outside of U.S. sanctions,” Mnuchin stated.
On Sunday, Incumbent Treasury Secretary Janet Yellen warned that the G7 price cap would benefit China as the country would have more negotiating power to get Russia to sell oil at a discounted rate, according to Reuters.
The White House did not immediately respond to the Daily Caller News Foundation’s request for comment.
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