Speaking on “Squawk Box Asia” on Friday from the Group of 20 economic leaders’ meeting in Bali, Indonesia, Corman said Russia’s war in Ukraine has imposed a “heavy burden on the world.”
“It leads to slower growth, higher inflation, higher energy prices, higher food prices, food security challenges, so the world would clearly be better off if Vladimir Putin stopped this war.”
Any measure to increase supply will reduce the price of oil and we will have the desired effect.
Mathias Korman
Secretary General of the OECD
On Thursday, US Treasury Secretary Janet Yellen said a cap on Russian oil prices would be critical to reducing inflation. US consumer inflation in June jumped to a 40-year high of 9.1%, according to data released this week.
“The price cap on Russian oil is one of our most powerful tools to address the pain that Americans and families around the world are feeling at the gas pump and in the grocery store right now,” he said.
In response, Cormann said G-20 foreign ministers would “talk” about imposing a price cap.
“Any measure to increase supply will reduce the price of oil and we will have the desired effect,” said the former finance minister for Australia.
“My message is that there are options available to the world in an open global market economy … through increased production from other sources, we can make up some of that difference and we can help ensure that the price stabilizes at a more appropriate level level.”
While Russia’s war of aggression has put enormous pressure on the world, he said, rising oil prices are just “one manifestation” of the “cost burden”.
“It is very important that the rest of the world is united [and] is working together to help mitigate some of that impact,” Corman added.
