Yellen Says Russian Oil Escrow Account Is an Idea ‘Worth Exploring’
Yellen Says Russian Oil Escrow Account Is an Idea ‘Worth Exploring’
(Bloomberg) -- Treasury Secretary Janet Yellen said that creating an escrow account for proceeds from Russian oil and gas sales was a possibility as the U.S. and its allies seek ways to tighten sanctions on Russia for its invasion of Ukraine.
“It’s an approach that is worth exploring,” Yellen told Republican Representative Andy Barr of Kentucky during a hearing in Congress. “We have a way for Russia to sell oil and gain proceeds in the form of a general license. But the license is temporary; it will expire. We need probably a better mechanism. It is a constructive suggestion that we could work with you on.”
Barr had asked Yellen for her take on his bill that would end a carve-out in the U.S. sanctions against Russia that permits energy transactions under a general license from Treasury’s Office of Foreign Assets Control. Barr said he had discussed the bill with Deputy Treasury Secretary Wally Adeyemo, and that it would give the administration the ability to create an escrow arrangement that would require all Russian energy revenues to be allocated for humanitarian purposes -- similar to arrangements currently in place for Iran.
Barr said that this would allow Europe to still get its energy supplies from Russia, but only on condition of withdrawing from Ukraine and using the proceeds for humanitarian purposes. The idea of an escrow account for oil profits has gained backing from a number of other countries and European Commission President Ursula von der Leyen said Tuesday it was one of the options the bloc would explore to target oil.
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