Russian oil revenues fall as West’s price cap starts to bite


Russia announced in March that it would cut oil production by 500,000 barrels per day after the West imposed price caps on Russian oil and petroleum products.

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Russia’s oil export revenues fell sharply in February due to a ban and price caps aimed at limiting President Vladimir Putin’s ability to finance oil supplies, the International Energy Agency said on Wednesday. ukraine war.

Russia’s oil export revenue was estimated to have fallen to $11.6 billion last month, down $2.7 billion from a sharp increase in exports in January, the International Energy Agency said.

“It remains to be seen whether there will be enough appetite for Russian oil products now that price caps are already in place, or whether its production will start to decline under the weight of sanctions. Revenues are already dwindling,” the group said in its latest report on the oil market Report.

The energy agency cited Russia’s finance ministry as saying that Moscow’s fiscal revenue from oil sales was only 45% of the same period last year.

The latest data comes after the IEA said in mid-February that the West’s oil war on Russia appears to have “expected result“Although production and exports have been surprisingly resilient in recent months.

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Ukrainian officials and activists have Before Calls on Western policymakers to step up financial pressure on Russia by targeting its oil revenues to help Kiev win.

The European Union’s embargo on Russian oil products came into force on Feb. 5 and builds on the $60 oil price cap imposed on Dec. 5 by major G7 economies. The latter measure also coincides with moves by the European Union and the United Kingdom to ban seaborne imports of Russian crude.

Asked on Tuesday whether he worried last year that the Russian economy could collapse due to international sanctions, Putin said he had always been concerned but that Russia’s “economic sovereignty” was now a major outcome. The foundations of Russia’s economic stability are “stronger than anyone imagined,” he added.

Putin said Russia’s financial system had grown stronger and Western companies that left Russia last year thought the economy would collapse, “but it didn’t”.

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— CNBC’s Holly Ellyatt contributed to this report.



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