According to Bloomberg, the West’s capping the price of Russian oil is costing Moscow 160 million euros a day.

The report cites a report from the Finnish Center for Energy and Clean Air Research, which notes that the lost profits will rise to 260 million euros a day when the restriction is extended to oil from February 5.

The study provides further evidence of how the restrictions imposed by the G7 countries and related European Union sanctions are affecting Moscow.

Top Russian oil is already being sold at more than two times lower than world prices.

“The EU ban on Russian oil and oil price restrictions are finally in place and their impact has been as significant as expected,” said Lauri Milivirta, chief analyst at the Finnish think tank.

The think tank said the EU should put even more pressure on Moscow. Further lowering the ceiling to $25-35 per barrel from the current $60 would be higher than Russia’s production and transportation costs, but would reduce the country’s oil revenues by at least another 100 million euros a day.

“It is very important to lower the price ceiling to a level that will deprive the Kremlin of taxable profits from the sale of oil and limit the rest of Russian oil and gas imports,” Milivirta said. There is always the possibility that Russia will arbitrarily cut supplies, leading to higher oil prices.

According to the agency, Russia has shipped €3.1 billion worth of crude oil on ships subject to price caps. Other measures taken alongside lowering the price cap, such as tougher sanctions for non-compliance and additional fines for the sale of tankers, could cut fossil fuel revenues by another 200 million euros a day, the report said.

US Treasury Secretary Janet Yellen said the cap on Russian oil prices imposed by Western countries in December achieved its goal of keeping Russian oil on the market by limiting Russia’s revenues.

“While the crude oil price cap has only been in place for about a month, we are already seeing early progress towards both of these targets, and senior Russian officials have acknowledged that the oil price cap is hurting Russia’s energy revenues,” Ms Yellen said. before meeting with his Canadian colleague.

Source: Bloomberg.