2023-05-18 15:06:40
A report from the US Treasury assures that the cap on the price of Russian oil has achieved its objective of reducing Russia’s revenues without destabilizing the market.
The ceiling imposed on the price of Russian oil by the EU, the G7 and Australia has “achieved its objectives”, according to a report published on Thursday by the US Treasury, one of the key topics of the G7 meeting which begins Friday in Japan.
“Despite initial market skepticism (…), market participants and geopolitical analysts have now recognized that the price cap achieves its dual objectives of reducing Russia’s revenue while maintaining global energy market stability. , the Treasury Department said in the report.
The subject, and, more broadly, that of the sanctions imposed on Russia, will be on the table of the meeting of the leaders of the G7 countries (Canada, France, United States, Germany, Italy, Japan, United Kingdom), which opens Friday in Hiroshima, Japan. Russia’s revenue from oil sales fell 40% in the first quarter, compared to the first quarter of 2022, the Treasury said, citing figures released by the Russian Finance Ministry.
Revenues down 43%
“Russian exports continued to flow, contributing to the stability of the world oil market”, and “the price of Russian oil fell considerably, which caused Kremlin revenues to fall”, details this report. “Before the war, oil revenues constituted 30 to 35% of the total Russian budget”, against “only 23%” in 2023 of the Russian budget, details the Treasury. Russia nevertheless “exported about 5-10% more crude oil in April 2023 compared to March 2022”.
According to the International Energy Agency (IEA), Russian oil exports hit their highest level in three years in March, but estimated revenues are 43% lower than a year ago. Russia manages to redirect its hydrocarbon exports to other countries (China, India, Turkey) but “seems to have a little trouble finding buyers for its crude and its petroleum products”, the IEA said on Tuesday in his monthly report.
The 27 countries of the European Union, the G7 and Australia agreed in December on a maximum price of 60 dollars a barrel for crude oil of Russian origin. In February, a ceiling price was set for Russian petroleum products.
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