Up to 80-90% of Russian oil will continue to flow outside the restriction mechanism, according to the US Treasury Department.
Russia could access enough tankers to transport most of its oil above the new G7 high. This could neutralize the plan of Western countries to limit revenues to the budget of the Russian Federation, Reuters reports citing an industry representative and a US official on Friday, October 21.
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The agency recalls that last month the G7 countries agreed to limit the sale of Russian oil at low prices from December 5, but faced the fear of the main players in the global oil industry that this step would world trade could be paralyzed.
Months of discussions between the US and these insurance, trading and transport companies have eased concerns about their impact on sanctions, but all parties now recognize that Russia will largely avoid this plan using its own ships and services.
Estimates that 80-90% of Russian oil continues to flow outside the restriction mechanism are not unfounded, a spokesperson for the US Treasury told the agency.
As a result, only 1 to 2 million barrels per day of Russian oil and petroleum product exports could be stopped. Despite the fact that in September Russia exported more than 7 million barrels per day.
In addition, the official added that the US knows that some ships are changing their country of origin, and that traders are moving outside the G7 to avoid the plan.
Russia will incur costs due to the need to make longer flights and will be relegated to the low-quality category of insurance and financing, the official said. This gives the US some optimism that Russia will still be forced to sell oil within the range of price limits.
“Theoretically, there is a large enough shadow fleet to extend Russian oil supplies past December 5,” said Andrea Olivi, global head of liquid cargo at commodity trading giant Trafigura.
It will be remembered that in September Russia’s revenues from oil exports decreased by 17.3% or $3.2 billion compared to August. Revenue was $15.3 billion, the lowest for all of 2022.
Three countries are helping Russia sell oil – Bloomberg
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.