Oil price cap is reducing Russian revenues, US analysis finds

Limits on the price of Russian oil by the United States and other countries are reducing the amount of money Russia can bring in, according to a Treasury analysis released Friday.

its analysis discovered last month, this policy forced Russia to discount oil by $19 per barrel.As of Friday morning, oil is in regular barrels It was sold at Approximately $81.

The G7, made up of the United States, France, Britain, Germany, Japan, Italy and Canada, has imposed a “cap” in 2022, saying each country will no longer provide insurance, trade finance or other services for the shipment of Russian crude oil. . It sold for more than $60 per barrel.

The cap was established in response to Russia’s invasion of Ukraine and went into effect in December 2022. In the first nine months of 2023, Russian oil tax revenues fell by more than 40% from a year earlier, according to a US analysis.

However, as a result, Russia pumped oil through a “shadow fleet” in an attempt to circumvent the cap, resulting in Russia selling oil above the cap level, the report said.

In response, the United States and its allies took further actions. The new analysis said the additional measures resulted in some shortfalls for Russia. The paper said the $19 discount was steeper than the $12-13 discount Russian Oil saw last October.

Analysis results available on the same day Another analysisLast year, the European Union removed a significant amount of Russian crude oil due to a “loophole” in sanctions that allowed oil refined into other fuels such as diesel to enter the bloc, the non-governmental organization Global Witness said. It turned out that it was imported.

Global Witness said on Friday that in 2023, the EU would import 130 million barrels of fuel from refineries that process Russian oil, resulting in about $1.19 billion in tax revenue for Moscow. Ta.

The United States on Friday also announced additional sanctions against Russia over the death of opposition figure Alexei Navalny.