The price cap on Russian oil introduced by the G7 and EU is being completely ignored, as almost no seaborne crude cargos have been traded below the $60-a-barrel limit, the Financial Times reported on Tuesday, citing Western officials and Russian export data.
The mechanism, which was put in place to reduce Moscow’s export revenues, was introduced in December 2022, and this February was followed by similar restrictions on exports of Russian petroleum products.
According to the FT, one senior EU official acknowledged that Moscow has been successfully sidestepping the cap, as “almost none” of the crude shipments were sold at or below the price limit.
These concerns were confirmed by Russia’s official statistics, which show that the average price of oil sold in October was $80 a barrel.
“The latest data makes the case that we’re going to have to toughen up… there’s absolutely no appetite for letting Russia just keep doing this,” the official said.