EU envoys are close to agreeing on an 18th package of sanctions against Russia, including a lower and dynamic price cap on Russian oil, potentially around $47 per barrel, to further restrict Russia's revenue from energy exports amid ongoing tensions over Ukraine. The package also involves measures targeting Russian energy infrastructure and financial networks, with full approval expected soon.
Russia's oil export revenues are expected to rise by $15 billion this year as the country evades the G7 price cap by shipping three-quarters of its oil overseas without Western insurance. This move allows Russia to become a more independent seller and benefit from the rally in oil prices. Despite assurances from the U.S. Treasury Department that the price cap is working, analysis of shipping data suggests that Moscow is becoming more adept at circumventing the cap. Critics argue that enforcing the price cap is challenging, while circumventing it is relatively easy.
