Russia has managed to almost entirely circumvent a G7 price cap on its oil exports, with Moscow claiming average sales at more than $20 per barrel above the imposed limit, the Financial Times reported Tuesday, citing Western officials and Russian export data. According to an unnamed senior European official who spoke to FT, “almost none” of Russia’s oil shipments in October were sold below the price cap. The $60-per-barrel price cap imposed in December is a key component of efforts by G7 countries and their allies to cut off Russian income sources funding the war in Ukraine. Since the price cap was imposed in December 2022, companies based in the EU, G7 countries and Australia have been banned from providing services enabling maritime transport, such as insurance, with Russian oil above the $60-per-barrel limit. G7 countries provide insurance services for 90% of the world's cargo and the EU is a major player in sea freight.

Source: The Nation November 15, 2023 02:01 UTC