Russian oil price ceiling has largely failed - Politico

An attempt by the West to limit Russian oil revenues with a price ceiling after Moscow started the war with Ukraine has essentially failed a year after it was agreed, Politico reports UNN, citing a new report. 

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Last December, the G7 countries and the EU imposed a price ceiling on Russian crude oil at $60 per barrel in an attempt to maintain stable oil supplies worldwide while draining the Kremlin's military budget.

"But widespread workarounds, gaping loopholes and a fuel business that continues to grow mean Moscow is still earning billions from its main export, which it can use to keep the war going," the newspaper writes.

It's not that the price ceiling had no impact, the newspaper writes. According to a new analysis by the Center for Research on Energy and Clean Air (CREA) think tank, the scheme has cost the Kremlin 34 billion euros in export revenues over the past year, the equivalent of about two months of this year's income.

"But this is much less than those who developed the rules had hoped for; moreover, this impact was most intense in the first half of 2023, and then began to fade. Russian oil is now steadily sold at a price that exceeds the $60 ceiling," the publication points out.

EU countries are reportedly discussing new ways to tighten the price ceiling as part of the 12th round of sanctions against Russia, according to a draft seen by the publication, including new obligations for traders and ship charterers to provide supply data.