Russian Oil Breaks Western Price Cap, Testing Sanctions and Economy

The price of Russian crude oil has surpassed the price cap set by the Group of Seven (G7) nations, testing the effectiveness of Western sanctions against Moscow. The cap, introduced eight months ago, restricts Western firms from providing services to export Russian seaborne oil if it is priced above the threshold. While the G7 and the European Union have banned imports of Russian seaborne crude, China and India have increased their imports of cheap Russian oil. The enforcement of the cap is challenging, particularly in monitoring services provided by Western companies to non-G7 countries. The narrowing gap between Urals and Brent crude prices indicates a diminishing impact of the price cap on Russian oil revenues. Despite rising prices, buyers like India are unlikely to turn away from Russian oil.