Moscow,In a bold move, Russia has reportedly managed to sell over 99% of its oil well above the Western-imposed price cap of $60 per barrel. Introduced by the EU, G7 countries, and Australia last December, the price cap aimed to curb Russia’s financial support for the conflict in Ukraine.
Vladimir Furgalsky, a Russian Energy Ministry official, revealed this achievement during a roundtable discussion at the upper house of parliament. He stated, “Even unfriendly countries note that the so-called price cap has not worked. More than 99% of oil traded well above the $60 per barrel ceiling.”
Initially facing challenges in finding enough ships for transport, Russia successfully overcame this hurdle by placing most of its exports with domestic or non-Western foreign shippers that do not require Western insurance coverage.
According to forecasts from Russian state bank VEB, the country’s oil exports are expected to reach 242 million metric tons (4.84 million barrels per day) this year, slightly down from 248 million tons in 2022. VEB predicts a stable figure of 241 million tons for 2024.
VEB’s chief economist, Andrei Klepach, highlighted a sharp decline in Russian pipeline gas exports to Europe. He noted a decrease from 56 billion cubic meters in 2022 to 16 billion cubic meters this year, with no expected recovery in the near future. Klepach emphasized the impossibility of compensating for falling Russian gas exports by increasing supplies to China.
This success in oil sales above the imposed cap showcases Russia’s resilience amid international pressures. The global community closely watches Russia’s strategic economic moves and their implications on geopolitical dynamics.
By Reuters
