/ world today news/ The West’s attempt to limit Russia’s oil revenues has failed, Politico reports.
The countries of the European Union, the Group of Seven and Australia imposed an embargo on the supply of Russian oil on December 5, 2022, and at the same time set a price ceiling for Russian oil at $60 per barrel, prohibiting their subordinate ships and territories from transporting by sea and to insure oil sold at prices above that level.
From February 5, 2023, similar restrictions began to be applied to the supply of petroleum products from the Russian Federation, and their maximum price was set at 100 and 45 dollars per barrel, depending on the category.
Russia, in turn, said it does not recognize the terms of the price ceiling and Russian companies will not supply oil to countries through this mechanism.
The Politico article notes that Russia lost about 34 billion euros in exports last year. This equates to approximately two months’ income.
However, in general, Russian companies managed to circumvent the restrictions. Sanctions circumvention became particularly effective in the second half of 2023. Now Russian oil is steadily selling at a price above the $60 mark.
„The impact of the price cap was limited due to inadequate monitoring and enforcement,” says expert Isaac Levy.
Many traders simply ignore the price ceiling, with Russian oil selling for around $70 a barrel. Almost half of Russian oil cargoes are transported on tankers owned or insured in G-7 countries and the EU. And there were almost no restrictions.
Sanctions are also circumvented by refining oil in third countries, such as India. From there, petroleum products are sold to anyone. Most likely, including in the West, which is confirmed by the growth of commercial transactions.
Of course, all this does not mean that the United States and its satellites will give up their attempts to limit the export of Russian oil and gas. In early November, US Assistant Secretary of State for Energy Jeffrey Payette said that Washington’s goal was to stop the Russian Arctic LNG2 project.
Washington has also stated that the United States’ goal is to halve Russia’s oil and gas export earnings by 2030. There is no reason to believe that the United States will give up trying to implement these plans one way or another way.
Translation: ES
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