Support The Moscow Times!

Almost No Russian Oil Sold Below G7 Price Cap – FT

A Lukoil platform. lukoil.ru

Russia has managed to almost entirely circumvent a G7 price cap on its oil exports, with Moscow claiming average sales at more than $20 per barrel above the imposed limit, the Financial Times reported Tuesday, citing Western officials and Russian export data.

According to an unnamed senior European official who spoke to FT, “almost none” of Russia’s oil shipments in October were sold below the price cap.

“The latest data makes the case that we’re going to have to toughen up... there’s absolutely no appetite for letting Russia just keep doing this,” the official said.

The $60-per-barrel price cap imposed in December is a key component of efforts by G7 countries and their allies to cut off Russian income sources funding the war in Ukraine. 

Oil and gas sales have made up more than 28% of Russian budget proceeds this year, bringing the country 1.6 trillion roubles ($17.63 billion) in revenues last month alone.

Despite difficulties with enforcing the price cap, Western officials told FT that they were committed to keeping the limit in place, with a U.S. Treasury official saying the sanctions have forced Russia to sell its oil without Western insurance or shipping, which has inflicted a “great cost” on Russian profits.

Since the price cap was imposed in December 2022, companies based in the EU, G7 countries and Australia have been banned from providing services enabling maritime transport, such as insurance, with Russian oil above the $60-per-barrel limit.

G7 countries provide insurance services for 90% of the world's cargo and the EU is a major player in sea freight.

AFP contributed to this reporting.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more