Sen. Chris Van Hollen, (D) Maryland, discusses pressing the Biden administration to use secondary sanctions on Russian oil purchases. He speaks with David Westin on Bloomberg's "Balance of Power."

Russia has been hit by global sanctions following President Vladimir Putin's decision to invade Ukraine.

Russian Sanctions

Senators seek secondary sanctions on Russian oil

Today you came out with a bipartisan Proposal with your compatriots as Senator Toomey Republican for Pennsylvania. Specifically, on the Energy Partners, tell us what you would be doing. David, it's great to be with you and as we just heard that we've been inspired by the Ukrainian people, and we've been by their side United States and our allies and supplying weapons and sanctions and much of the sanctions have been effective but one big gap and that of course, has been that Russia has been sealed record revenues from their energy exports, especially well, so send it to me and I both bought the vitamin Australians effort together with the G7 to put a price cap on Russian oil, but we believe that you need to have that backed up by the threat of secondary sanctions for anybody, that violates the price cap. Because as of right now, the price cap is agreed to by the G7 and some countries, but other major buyers of Russian oil or not part of it. So we want a uniform National stand International standard and we wanted to have key. Position of your proposal, are they in favor of it? They're not taking a position yet which is not unusual for any executive branch shot and Ceci to weigh in this early on any particular for post. But we are in communication with them. And this is an effort to reinforce their own plan with respect to a price cap. Because course, the price cap only works if everyone in the world that complies with it, we don't want any loopholes, we don't want leaks. And if the price cap works at a purely for the, under the G7 strategy, then you won't need the threat of secondary sanctions. But we think this will bring the world into compliance that were quickly with it with the price cap and help choke off those profits, Russia's using to finance their War Machine, as soon as you mentioned. Other major buyers, you'll forgive me. If I China, and India come to mind pretty quickly. What would be the likely reaction of shiny and yet they would not care for this proposal one bit? Well, it's a person. Everybody's interest to get the cheaper oil, you know, I think China and India would welcome the lower prices, and that is the point that vitamin is traces, making it up. I think, unless you have this uniform set of sanctions as a backup, you can easily imagine gladimir Putin. You know saying well I'm not going to sell it that you're got that G7 price tap to you you you know some countries but here I'll negotiate, a separate deal with the China or India. And so, in order for this price cap to be effective, we need everybody on board and again, to a line, which is being able to buy cheaper. Oil, helps everybody. And we think the same sins are necessary to give every country. The ability to say to Russia, sell at that price, or we're not going to buy an Altima. To keep their energy infrastructure going Russia will have to comply with the price cap. Another piece of business up on Capitol Hill as I figure it was in the next couple of weeks or so we got to have some sort of a resolution to keep the government going. What are the chances that contain resolution actually doesn't get done? We shut down the government. We're not going to shut down the government. I think the chances of that are very low, we're working to wrap up the continuing resolution before the end of the fiscal year September 30th. We hope to have the boat on that very shortly. Obviously, the clock is ticking. You know, there's always a Fail-Safe mechanism to extend in a provider CPR for a couple days. While you put the fun finishing touches on an agreement. So yeah, that would be a Fail-Safe mechanism but I hope we don't have to do that but number one, priority is making sure we avoided unnecessary. Shameful government shutdown will give me a chance if there's going to be a continuous Lucien. Is it going to have that so-called permitting reform? The senator manchin of West Virginia in the system because I'm not aware. There's even language on that yet. Is there? Well, that's the current plan, but as you point out, we haven't seen the language. I understand said her Mansion is said that they're going to release the final language tomorrow. Many of us have been. Providing input into that discussion, including myself. I want to make sure that any permitting reform also helps accelerate the deployment of clean energy. So you're you're right until people see the specifics on that. I think many of us obviously will withhold judgment. But the good news is that that's apparently coming tomorrow and we'll go from there a busy, man. This week, you're also going to be having these hearings for the percentage Banking Committee where we have some CEOs of major Banks coming up there. Give me a sense from your point of view. What are you most interested in these hearings? Well, their whole range of issues David. But one of the issues that the many of us, Senator, Mark Warner, myself have been interested in is these Banks of providing and supporting cdfi community community based development institutions. And those are lenders that are in communities that have connections with small business in the community. So we want to encourage at these big Banks to do more to provide support and lending a to those brass responders the CDF eyes. That's one of many issues on the agenda is that? Because I'm curious. There's some concern, I'm part of a lot of centers-louisville, the rest of us, by the way, about how sort of regular old Americans are dealing with increased inflation. A lot of pressures on them. Is this cdfi mechanism? The principal way that the big Banks could help some regular working people Well, the big Banks could clearly helped thwart capital and were low interest loans. That's just some of the places they're needed most tomorrow courses to the meeting of the Federal Reserve and take their action. And I expected action, I assume with respect to interest rates, you know, the big challenge, of course is balancing. The team are rising prices with the need to not disrupt a very good job. That is obviously the, the needle that the FED needs to thread and I hope their way and carefully M, you know, both sides of that equation.

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Russian Sanctions