Yellen says Russian oil price cap could save African countries $6
billion annually
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[January 20, 2023]
By Andrea Shalal
DAKAR (Reuters) - Russia's war against 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.
Yellen is the first of a number of top U.S. officials who plan to visit
Africa this year, including President Joe Biden, as Washington seeks to
deepen ties with the continent and provide a counterweight to China,
whose collateralized loans have left many nations deeply in debt.
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U.S. Treasury Secretary Janet Yellen
speaks during her interview with Reuters in New Delhi, India,
November 11, 2022. REUTERS/Altaf Hussain
Speaking at a co-working space that helps women and young
entrepreneurs, Yellen said U.S. investments in Africa were motivated
by "our mutually beneficial, long-term partnership" with a goal of
generating positive economic returns.
Yellen met earlier with Senegal's Minister of Economy, International
Planning, and Cooperation Oulimata Sarr, who like Yellen is also the
first woman to serve in her current role.
The U.S. Treasury secretary will meet later with Senegalese
President Macky Sall and Finance Minister Mamadou Moustapha Bā.
Yellen said U.S. investments prioritized rigorous technical
standards, had high standards for accountability and transparency,
and also carefully considered risk to the longer-term sustainability
of a country's debts.
Yellen, long critical of the pace of China's efforts on debt
treatments for Zambia and other countries, said it was important to
provide "timely and comprehensive" solutions to allow African
economies to continue to make important public investments.
"We believe that the international community, including China, needs
to provide meaningful debt relief to help countries regain their
footing. Timely debt relief is in the interests of both debtors and
creditors," she said.
(Reporting by Andrea Shalal; Editing by Toby Chopra)
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