Russia’s oil export revenues have fallen by a third this year compared to 2022. This is due to the price ceiling imposed by a coalition consisting of Australia, Canada, the European Union, France, Germany, Italy , Japan, the United Kingdom and the United States.
“Russian tax revenues from the export of oil and oil products – Russia’s main source of income – were 32 percent lower between January and November 2023 than in the same period last year,” the coalition said. In the first five months of 2023 alone, revenues fell by 50 percent, the US reported in June.
On Wednesday, the countries also announced a tightening of the rules surrounding the price ceiling for Russian oil, which was introduced to make financing the war in Ukraine more difficult. A ceiling of $60 per barrel was agreed. In other words, companies are not allowed to participate in the transport of Russian oil if it is sold for more than $60 per barrel. Insurers and reinsurers are therefore not allowed to cover the maritime transport of Russian oil unless it is sold at a price lower than the ceiling.
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Higher income
A month ago, the Russian Ministry of Finance announced that Russian income from oil exports in the past six months was slightly higher than before the Western sanctions came into effect. “Russian oil revenues have doubled in the past six months. In October, Russia earned more than $13 billion from oil exports,” it said.
The figures should show that the price ceiling is hardly being adhered to. The European Parliament adopted a resolution last month calling on EU countries to monitor the application of sanctions more closely.
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