Kenya risks US sanctions should it purchase Russian oil

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NAIROBI, Kenya - In a recent interview with the BBC Kenya’s President William Ruto revealed that his administration is open to doing business with Russia.

Kenya’s head of state said he will be more than willing to purchase Russian fuel after he removed the fuel subsidy causing a sharp increase in pump prices. He further said that his aim is to ensure that Kenyans have access to lower fuel prices.

"I am now going to move on to the agenda of making sure that we have government-to-government relationships that will progressively now begin the journey to bring the prices of fuel down. East Africa would be a good option but Kenya is what we are going to be focusing on. The strategy we have is to ensure that we work with the market forces on how we can have a government-to-government relationship that will get us fuel at probably Ksh20 to Ksh25 percent cheaper than in the market." President Ruto said.

Pressed with the question of whether he will be eyeing the Russian oil, Dr. Ruto added that his government has all the options of working with Vladimir Putin’s administration for the sake of Kenyans.

Russia has been isolated internationally following its invasion of Ukraine on February 24, 2022.

The president defended his decision to remove fuel subsidies, citing that it was draining government coffers.

" I had to remove the subsidies because they were a huge drain on resources that would be used for the development of the country and yet the prices were not coming down and it was generally distorting prices of fuel in the country and creating unnecessary shortages," he said.

But should Kenya goes ahead and engage in business with Russia, certainly this will put the country at loggerheads with the West, especially the US government who has imposed sanctions on Vladimir Putin's government.

Earlier this month, Biden’s administration threatened to impose sanctions on buyers of Russian oil.

According to the US Treasury Department statement dated September 9, 2022, said individuals making 'significant purchases of oil above the price cap' as well as those who provide false information about those purchases may be a target for sanctions enforcement action.

The warning applies that the Joe Biden administration will be watching closely to any African state that will trade with Russia are a target for sanctions.

The US Treasury’s guidance came after G7 finance ministers reached an agreement to establish the price cap after months of discussion. The goal is to limit Russia’s revenue from exports of crude oil and refined products without triggering a global price spike.

The US and UK had led other Western countries in cutting Russian from the SWIFT system, a thing that might force Kenya to use an alternative means of payment for the Russian oil.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the global financial artery that allows the smooth and rapid transfer of money across borders.

GAROWE ONLINE

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