Senators Call For More Sanctions On Russian Oil

On Tuesday, Democratic and Republican senators asked for imposing secondary sanctions on international banks to strengthen a price cap G7 countries plan to impose on Russian oil over Moscow’s invasion of Ukraine.

The news adds momentum to the prevalent risk aversion and exerts downside pressure on the AUD/USD prices but fails to propel the oil to the north amid recession fears.

Senator Chris Van Hollen and Senator Pat Toomey announced a framework for legislation to impose the secondary sanctions targeting financial institutions involved in trade finance, insurance, reinsurance and brokerage of Russia oil and petroleum products sold at prices exceeding the cap.

Biden’s administration has been reluctant to impose secondary sanctions, concerned they could complicate relations with importers of Russia oil like China and India. Elizabeth Rosenberg, Treasury Assistant Secretary for Terrorist Financing and Financial Crimes, told the hearing the price cap was a powerful tool to hit Russia and stabilize energy prices.