Russia Dodges G7 Price Cap Sanctions on Most of Its Oil Exports

Russian crude oil supplies increased 50% this spring despite the G7 countries imposing sanctions due to war in Ukraine, the Financial Times reported on Sunday, citing data from analytics company Kpler.

The European Union, G7 countries, and Australia introduced a price cap of $60 a barrel on Russian oil last December, aiming to curb Russia’s ability to finance the conflict in Ukraine.

However, Russian oil revenues are likely to increase due to constant increases in crude prices and a reduction in the discount on its own oil, the FT report said, citing Kyiv School of Economics estimates.

Almost three-quarters of all the seaborne Russian crude flows traveled without Western insurance in August, according to an analysis of shipping and insurance records by the Financial Times.

Russia cut its seaborne diesel and gas oil exports by nearly 30% to about 1.7 million metric tons in the first 20 days of September from the same time in August. Russia’s temporary ban on exports of gasoline and diesel to most countries, announced last week, was expected to further tighten supplies.