The Financial Times suggests that the Russian Federation is becoming more adept at avoiding oil price caps set by the G7 countries.
Russia has avoided Group of Seven (G7) sanctions on most of its oil exports. Russia’s income from raw materials is growing. It was reported by the Financial Times.
A continued rise in crude oil prices since July to over $95 a barrel, coupled with a decline in the discount on its own oil, will mean that the Kremlin’s oil revenues in 2023 could be at least $15 billion higher than expected
In August, nearly 75% of all seaborne oil shipments from Russia were carried out without Western insurance, compared with about 50% this spring.
The increase means Russia is becoming more adept at circumventing the $60-per-barrel oil price cap of the G7 countries, allowing it to sell more of its oil at prices close to international market prices, the media said.
The Russian oil sector continues to face serious challenges, including allegations of a shortage in the domestic market for petroleum products and a general decline in export volumes. However, the figures suggest that Russia’s military budget will receive more oil revenue, the FT concludes.
Let’s recall that the average price for the main brand of Russian Urals oil in January-August of this year decreased by 1.45 times compared to the same period in 2022 and reached $56.58 per barrel.
As you know, in the first half of 2023, Russia’s oil and gas revenues fell by almost 50%. Currently, the Russian Federation is trying to stimulate the increase in oil prices.
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.