John Smith spoke to the New York Times about the Biden administration’s push to form an international buyers’ cartel to cap the price of Russian oil, though the maritime insurance industry says policing transactions is not workable.
Experts believe that if the European Union bans insurance transactions, an oil price cap may be the best chance to mitigate an economic fallout. According to John, the key is ensuring that financial services firms and maritime insurers are not responsible for vetting every oil transaction, as well as providing guidance on complying with the sanctions.
“The question is will enough jurisdictions agree on the details to move this forward,” John said. “If they do, it could be a win for everyone but Russia.”
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