Russia’s oil price cap has led to a 50% drop in oil revenue in the first five months of this year, Under Secretary of the Treasury Wally Adeyemo said during a speech in Washington on Thursday.
Aiming to reduce the Russian government’s ability to finance the war in Ukraine, a coalition of the G7, the European Union and Australia capped the price of its oil in December. The cap was set at $60, while Brent prices were close to $76 on Thursday.
western sanctions
Asked how the Treasury was able to determine the level of Russian revenue, a ministry official said the United States had several tools that allowed it to measure Russian oil prices.
The Russian authorities themselves have acknowledged the effect on their revenue in this area, the same source said, adding that no decision had been made on the end of the cap.
In addition to limiting Russian oil prices, Western sanctions also make it more difficult for the Russian government to replace more than 10,000 military equipment lost since the start of the invasion of Ukraine, he said.
Source: BFM TV
