Russia’s oil price cap has led to a 50% drop in oil revenues in the first five months of this year, Deputy Finance Minister Wally Adeyemo said in a speech in Washington on Thursday, AFP writes.
To reduce the Russian government’s ability to finance the war in Ukraine, in December a coalition of the G7, the European Union and Australia imposed price caps on its oil.
The ceiling was set at $60, while the price of Brent oil was close to $76 on Thursday.
“This decline in oil revenues comes despite an increase in Russian oil exports since the start of the war,” Adeyemo said.
“Despite these higher sales, Russia is making less money because its oil is now selling for about 25 percent below the market price,” the US official said.
When asked how the Treasury Department was able to determine the level of Russian revenues, a department representative said that the United States has several tools to measure Russian oil prices.
The Russian authorities themselves have recognized the impact on their revenues in this area, the same source said, adding that no decision has been taken to lift the restriction.
In addition to curbing Russian oil prices, Western sanctions have also made it difficult for the Russian government to replace more than 10,000 pieces of military equipment lost since the invasion of Ukraine began, he added. (photo: DreamsTime / Dmytro Melnikov)
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Source: Hot News
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