Russian oil price cap could save African countries $6b annually

US Treasury Secretary Janet Yellen said Friday the oil price cap on Russia could save the 17 largest oil importing African countries $6 billion on an annual basis.

Yellen said Russia's war on Ukraine threatens energy security around the world, and implementing a price cap on Russian crude oil aims to stabilize global energy prices and reduce Russia's oil-based revenues.

"We are seeing examples of emerging markets saving even more by using the price cap to negotiate steeper discounts with Russia. And we encourage more countries to do the same," she said in Senegal's capital Dakar. The Treasury head said the US and its allies will soon implement a price cap on Russia's refined oil products as well.

As part of the price cap deal, G7 member countries and the EU agreed in December to ban their shipping companies from facilitating Russian oil shipments transported by sea if they are sold above the price cap of $60 a barrel.

Yellen added that Washington is now establishing a USAfrica strategic partnership on food security to address the short-term needs of 300 million Africans affected by the food crisis, in addition to the $13 billion commitment in emergency aid and food assistance amid Russia's war on Ukraine.

"As Africa unlocks its economic promise, the United States will continue to support its growing role on the world stage. African countries firmly belong at the table. Their communities are disproportionately vulnerable to the effects of global challenges. "And any serious solution requires African leadership and African voices. This is one reason why we support the addition of the African Union as a permanent member of the G20," she said.