Andy Barr Hammers Treasury Sec. Janet Yellen With Questions on ‘Ineffective Sanction Strategies’

3 months ago

On Tuesday, Rep. Andy Barr (R-KY) questioned Treasury Secretary Janet Yellen on sanction policy during a House Financial Services Committee hearing.

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Transcript

00:00The gentleman's time has expired.

00:01Just a reminder, the Secretary does have a hard stop at 1 o'clock today, so we're going

00:04to try and squeeze in as many as we can here.

00:06Right now, the next one up is Mr. Barr, who's recognized, a gentleman from Kentucky, for

00:10five minutes.

00:11Thank you, Madam Secretary.

00:12I want to drill down into the Treasury Department's ineffective sanction strategy when it comes

00:19to Russia.

00:20A June 26 Wall Street Journal article highlighted a collision of foreign and energy policies

00:26within the Biden administration and frustration among Treasury staffers over the lack of action

00:32against oil trading networks that ferry Russian and Iranian oil.

00:36While Treasury sanctions, on the one hand, are attempts to, quote, throw sand in the

00:41gears of Russia and Iran's oil export machines, unquote, the article identifies attempts by

00:47the National Economic Council, led by Lael Brainard, to keep global oil output up to

00:52ward off pressures on inflation and, quote, keep gas prices stable ahead of the election

00:59by encouraging oil to flow into global markets, unquote.

01:03Secretary Yellen, who is running the show in the administration?

01:07Those who want to be tough on our adversaries like Russia and Iran, or those who want to

01:11ensure that global oil flows keep gas prices stable ahead of the election?

01:17It's a very good question.

01:19I think the article is, frankly, very misleading because the NEC and Treasury are really on

01:29the same page.

01:31We've been working together closely and we really have identical goals.

01:37So the same page in terms of trying to defend this failed oil price cap scheme?

01:45I'm sorry.

01:46I don't think it's a fail.

01:47Well, let me reclaim my time.

01:49Bloomberg reported last week that Russia's government revenues from oil sales rose almost

01:5550% compared to last year.

01:59If this is not an indictment of Treasury's licensing policy and the failure of the oil

02:06price cap scheme, I don't know what is.

02:07Well, it worked very well in the first year.

02:11Not anymore.

02:12Not anymore, Madam Secretary.

02:16Let me reclaim my time.

02:17Let me reclaim my time.

02:18I offered an amendment to the financial services appropriations bill.

02:23I got 30 Democrats to vote to sanction Russian oil exports, 30 Democrats, mostly climate

02:29oriented Democrats.

02:32This administration, which has this massive climate focus, wants to punish American energy

02:38production.

02:39That's the whole strategy through ESG and climate disclosure and no permitting, no licenses,

02:46no Keystone pipeline.

02:47But when it comes to Putin's oil machine, license it, allow exports of Russian energy.

02:55What on earth are you all doing?

02:58We've said explicitly from the very outset, we've had two goals with the price cap program.

03:05Number one, deprive Russia of revenue.

03:09Number two, make sure the global oil market is well supplied to neither Americans nor

03:16people in other states.

03:17You failed in both.

03:18You failed in both.

03:19Madam Secretary, you failed in both because you are waging a war against American energy,

03:22but you're green lighting Russian energy.

03:24You're weak on Russia.

03:26I want this administration to revisit the failed oil price scheme and sanction the crap

03:32out of Vladimir Putin's energy, which is financing the war effort.

03:37And the oil price cap is not working.

03:40Let me shift to China.

03:41Let me shift to China.

03:43Treasury has prohibited US dealings with the publicly traded securities of certain companies

03:48connected to China's military industrial complex.

03:51But since being put on CMIC list, Hikvision revenues have risen 30%, Sinochem's revenues

03:57up 60%, China mobile stock prices shot up 90%, Huawei, SMIC went on to develop advanced

04:035G chip, and Huawei isn't public to begin with.

04:07Clearly regulating the trading of publicly traded securities has proven irrelevant.

04:11Why doesn't Treasury impose blocking sanctions on these CMIC companies?

04:17Well, I can't discuss particular cases, certainly not in this venue.

04:26You're always looking at entities that are engaging in activity that could merit sanctions.

04:34Madam Secretary, would Treasury welcome an opportunity by legislation, my bill, on China

04:39outbound?

04:40You all have issued an executive order.

04:42I think it's Congress's responsibility to create an outbound investment framework.

04:48Would Treasury welcome an opportunity through legislation to explain on an annual basis

04:53why it has refrained from imposing full blocking sanctions on Chinese entities on the CMIC

05:00list?

05:01And it could be perhaps an escape.

05:04Well, we can discuss it with you and I'll have my staff be in touch with yours to understand.

05:11We've got a list of Chinese military industrial complex companies, but Treasury hasn't sanctioned

05:17any of them.

05:19That's a real good question for Treasury to answer to the American people through their

05:23elected representatives in Congress, and with that I yield.

Andy Barr Hammers Treasury Sec. Janet Yellen With Questions on ‘Ineffective Sanction Strategies’

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