Russia has managed to sell almost all of its oil well above the price cap set by Western nations at $60 per barrel, a Russian government official said on Thursday.
The European Union, G7 countries, and Australia imposed the price cap in December 2022 to limit Russia’s ability to finance the conflict in Ukraine. The cap aimed to curb Russia’s revenue from oil exports.
In a report from Reuters, the official, Vladimir Furgalsky said “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.”
Russia initially faced challenges, including a temporary cut in exports, but later adapted by placing most exports with non-Western shippers.
This development suggests that Russia has found alternative routes and buyers that are not subject to Western-imposed restrictions, enabling it to circumvent the price cap.