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Russian oil breaks price cap, revenue soars in July

Russia’s crude oil surpassed the price ceiling set by the Group of Seven (G7), leading to a significant rise in income from oil exports, Bloomberg reported on Aug. 11., citing statistics provided by the International Energy Agency.

Last month, the weighted mean price for the country’s crude oil transported by sea reached $64.41 per barrel. Russia’s oil revenues hit an eight-month peak in July at over $15 billion, up 20% from the previous month.

However, their July revenues are still down over 20% from this time last year.

The G7 introduced the cap to limit Moscow’s funds for its war against Ukraine. Within the cap system, businesses are granted permission to transport Russian oil only when their payment falls below the threshold price. Otherwise, they lose access to certain G7 services.

Caps and sanctions following the full-scale invasion of Ukraine in February 2022 have led Moscow to primarily seek buyers in India and China.

Given the current scenario where Russian crude grades are being traded above the approved G7 price cap, the chance of triggering price increases gains momentum. If shipping firms and insurers become wary of accepting Russian shipments exceeding the cap, this could lead to a tightening of supplies and global price escalation.

However, proponents of the cap system say it is still working.

“Any money Russia spends to create an ecosystem outside of the price cap takes resources away from its ability to fund its barbaric war,” U.S. Treasury Department spokesperson Megan Apper said.

– The Kyiv Independent

2 Comments on "Russian oil breaks price cap, revenue soars in July"

  1. peakyeast on Thu, 24th Aug 2023 8:45 am 

    Kyiv independent… A completely impartial media outlet – if anyone should be in doubt.

  2. Theedrich on Sun, 27th Aug 2023 3:53 pm 

    The Democrat Party is a party of murderers, along with many Republicans.  This cartel knows full well that it is sending thousands of Ukrainian men into a slaughter house — all so that Washington Congressional parasites and their supporters can continue to be reelected and live high on the hog.  The American and other Western media are participating as accessories in this genocide.  They tell themselves that they are doing the work of some god that will preserve their fake “democracy.”  That god, of course is in fact infernal.  And they weaponize the government to help enforce their monstrous crime.

    When Ukraine collapses, all of these assassins will have innumerable excuses ready, and probably blame the catastrophe on Donald Trump.  And the American rabble will greedily swallow these lies in order to make themselves feel righteous and holy.

    𝖁𝖊𝖗𝖎𝖙𝖆𝖘 𝖑𝖎𝖇𝖊𝖗𝖆𝖇𝖎𝖙 𝖛𝖔𝖘.

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