Trump’s former Treasury secretary calls G-7 Russian oil price cap ‘the most ridiculous idea I’ve ever heard’
Former US secretary of the treasury Steven Mnuchin on a panel at the Future Investment Initiative in Saudi Arabia in October 2022. Mnuchin this week criticized the G-7’s plan for a cap on
Fayez Nureldine | Afp | Getty Images
Former U.S. Treasury Secretary Steve Mnuchin described the G-7’s plan for a price cap on Russian oil as “ridiculous.”
Speaking to CNBC’s Hadley Gamble during a panel at the Milken Institute’s Middle East and Africa Summit, Mnuchin said the idea was “not only not feasible, I think it’s the most ridiculous idea I’ve ever heard.”
He added that while there were no certainties, sanctions on Russia and Russian officials — which the U.S. and other nations have continued to roll out since Russia’s unprovoked invasion of Ukraine — could have had an impact before the war started rather than after.
“Sanctions would have had a big impact back then. I think the problem now is that there’s limited options … there’s parts of the world that are now buying Russian oil outside of U.S. sanctions,” he said.
“But look, a price cap, the market is going to set the price. So if you put sanctions on at higher prices, in a way you’re just making the situation worse, in my opinion.”
The Group of Seven nations — the U.S., Canada, France, Germany, Italy, Japan and the U.K. — along with Australia, have reportedly agreed to set a fixed price cap on Russian oil from Dec. 5, but the level has not been announced.
The plan, which has been under discussion for several months, involves a ban on the provision of certain services, such as maritime routes, insurance and financing, to buyers of Russian oil unless it is sold at or below the cap.
It is intended to limit the Kremlin’s ability to fund the war in Ukraine while also protecting consumers and households from sky-high energy prices. New sanctions are also due in early December that will end all Russian crude oil deliveries to the EU by sea, ahead of a ban on all Russian refined products in 2023.
As Europe seeks to wean itself off Russian oil and gas, Moscow has ramped up its sale of oil to countries including China and India. Energy analysts say it will be vital to get those countries’ cooperation for any price cap to be effective, but it remains unclear how they will react to any final announcement.
Current U.S. Treasury Secretary Janet Yellen said last week India would still be able to buy oil from Russia at any price so long as it avoided the Western sanctions, and that this scenario would still dampen global oil prices and curb Russian oil revenues.
Mnuchin served for the full term of President Donald Trump and now works in private equity investing.
At the Milken Institute panel, he said getting Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy to the negotiating table was “long overdue” and that a best-case scenario in the near term may be a pause in fighting.
Ukraine has previously said it will only enter talks following the “restoration of Ukraine’s territorial integrity.”
A Kremlin spokesperson on Thursday told reporters it was “difficult to imagine public negotiations … One thing is for sure: the Ukrainians do not want any negotiations.”
Mnuchin also said he viewed energy security and national security as the same thing, and that one of the things he had wanted funding for during the coronavirus pandemic, when oil prices plunged, was to fill up the U.S. strategic reserve.
He said that the Biden administration had an “extreme focus on the issue of global warming” and that while he was “not minimizing” the issue, he believed it was important not to “discourage investment in the carbon economy.”
“With approvals, and again this stuff doesn’t need legislation, there are things the current administration could do, you know, there’s a need for pipeline, there’s a need for infrastructure, there’s a need for more drilling. There’s plenty of shale oil and at these numbers it’s very economic to produce.”
The industry was being “starved of capital,” he said.
“We can’t turn around and say to OPEC+, Why are you not producing more oil, when we’re not doing it ourselves.”
Jack Dorsey, co-founder and chief executive officer of Twitter Inc. and Square Inc., listens during the Bitcoin 2021 conference in Miami, Florida, on Friday, June 4, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
Block shares jumped in extended trading on Thursday after the fintech company increased its forecast for the year.
Here is how the company did, compared to analysts’ consensus estimates from LSEG.
- Earnings per share: 62 cents adjusted vs. 69 cents expected
Block doesn’t report a revenue figure, but said gross profit rose 14% from a year earlier to $2.54 billion, beating analysts’ estimates of $2.46 billion for the quarter. Gross payment volume increased 10% to $64.25 billion.
Block raised its guidance for full-year gross profit to $10.17 billion, representing 14% growth from a year earlier. In its prior earnings report, Block said gross profit for the year would come in at $9.96 billion.
The company expects full-year adjusted operating income of $2.03 billion, or a 20% margin. For the third quarter, the company expects gross profit to grow 16% from a year ago to $2.6 billion, with an operating margin of 18%.
Square payment volume in the quarter grew 10% from a year earlier.
Block faces growing competition from rivals such as Toast and Fiserv‘s Clover, though its Square business still gained share during the quarter in areas such as retail and food and beverage.
Block shares were down 10% this year as of Thursday’s close, while the Nasdaq is up 10%. Last month, Block was added to the S&P 500.
— CNBC’s Robert Hum contributed to this report.
Environment
The new Chevy Bolt EV will get cheaper LFP batteries from China’s CATL, at least for now
Until GM builds its own, the new Chevy Bolt EV will use lower-cost LFP batteries from China’s CATL. GM will temporarily lean on CATL to power its most affordable electric vehicle.
The new Chevy Bolt EV will use batteries from China
The new Chevy Bolt EV is set to begin rolling off the production line at GM’s assembly plant in Fairfax, Kansas, later this year.
GM’s CEO Mary Barra promises the new EV will arrive with “substantial improvements,” including longer range, faster charging, and a stylish new look. It will also be the company’s first EV based on the Ultium platform to launch with LFP batteries in North America.
Although the batteries were initially expected to be made in-house, it appears that GM will import them from China, at least for the next few years.
A new report from The Wall Street Journal claims GM will import LFP batteries from CATL to power the new Chevy Bolt EV over the next two years.
According to sources close to the matter, GM will rely on CATL for batteries until it begins producing more affordable EV batteries in collaboration with LG Energy Solutions in 2027.
“To stay competitive, GM will temporarily source these packs from similar suppliers to power our most affordable EV model,” a company spokesperson said. The statement added that “For several years, other US automakers have depended on foreign suppliers for LFP battery sourcing and licensing.”
Ford is licensing technology from CATL to produce LFP batteries in Michigan, which will power its next-generation electric vehicles.
Given Trump’s new tariff and trade policies, GM will face hefty import costs from China. According to Sam Abuelsamid from auto research firm Telemetry, combined with other cost-cutting measures, “the new Bolt with Chinese batteries may still be marginally profitable or “close enough.” He added that “It may be that the economics work for GM to do this on a temporary basis.”
Just over a week ago, Chevy offered a sneak peek at the new Bolt EV with the first teaser images. It’s scheduled to enter production later this year and will arrive at US dealerships in 2026.
Although GM has yet to announce prices and specs, the new Bolt EV is expected to start at around $30,000 with a range of around 300 miles. It will also be the second GM electric vehicle, following the Cadillac Optiq-V, with a built-in NACS port for charging at Tesla Superchargers.
Electrek’s Take
Chinese battery makers, including CATL and BYD, are dominating the global market with lower-cost and more advanced tech.
According to new data from SNE Research, CATL and BYD widened their lead in the first half of 2025. CATL held the top spot with a 37.9% market share while BYD was second at 17.8%.
The combined market share of South Korean battery makers, LG Energy Solution, SK On, and Samsung SDI, fell to 16.4%, a 5.4% decline from the first half of 2024.
Although the deal may work out in GM’s favor, it still highlights the significant gap between US auto and battery makers and their Chinese counterparts.
Meanwhile, GM’s current most affordable electric model, the Chevy Equinox EV, is expected to be among the top three best-selling EVs in the US this year, behind the Tesla Model Y and Model 3. GM calls it “America’s most affordable 315+ range EV” with starting prices under $35,000.
Will the new Bolt EV see the same demand? With prices expected to start at around $30,000, it will be one of the lowest-priced electric vehicles in the US.
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Despite a full lineup of electric models rolling out, Cadillac now plans to keep offering at least one popular gas-powered SUV.
Cadillac XT5 SUV will keep a gas engine in the US
GM’s luxury brand was supposed to go all-electric by the end of the decade. Although it already walked back its commitment last year, Cadillac has now confirmed which popular gas SUV will stick around a while longer.
The Cadillac XT5, the brand’s best-selling vehicle outside of the Escalade, will continue to be sold in North America.
The news was first reported by The Detroit Free Press, which cited a recent memo from GM to UAW workers. Although Cadillac had planned to end XT5 production at the end of the year, GM informed workers that it will continue to be built until the end of 2026.
The current Cadillac XT5 will continue to be sold until the 2027 model year arrives in the US, which will still feature a gas engine.
It could arrive as a potential hybrid, similar to the XT5 sold in China, which features a 2.0L turbocharged engine combined with a 48V electric motor. No fully electric version was mentioned.
GM will continue Cadillac XT5 production in Spring Hill, Tennessee, alongside the Lyriq and Vistiq electric SUVs.
Cadillac claims to be the leading luxury EV brand in the US with a full lineup of electric SUVs. However, that doesn’t include Tesla. The luxury brand now offers the entry-level Optiq, mid-size Lyriq, three-row Vistiq, and even larger Escalade IQ and IQL electric models.
In the first half of the year, nearly 25% of Cadillac vehicles sold in the US were electric. The XT5 was Cadillac’s second-best-selling vehicle, with over 12,700 units sold. The Escalade was its top seller with over 24,300 models sold through June.
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