12:46 06 Feb 2023

Price cap slashed russia's oil revenue by 30% in January

The price cap for Russian oil introduced by the G7 countries deprived russia of $8 billion in revenue in January, says International Energy Agency's Executive Director Fatih Birol.

Reuters reports that, in his opinion, limiting the price of russian oil at the level of $60 per barrel has achieved its goals, both stabilizing oil markets and reducing russia's income from oil and gas exports.

So, according to the agency, russia's oil revenues probably fell by almost 30% in January, or about $8 billion, compared to last year.

It was previously reported that the West's restrictions on russian oil prices cost the Kremlin 160 million euros ($172 million) per day (about $5 billion per month).

More background

The countries of the G7 group announced that they agreed to set a price cap for oil exported from the russian federation by sea at the level of $60 per barrel from December 5.

The EU and the G7 agreed to introduce a price ceiling for russian petroleum products starting on February 5: $100 for russian diesel and $45 for various oils.

The member states also signed a commitment to revise the limit price for russian crude oil in March. Now, the cost is $60.

Europe has decided to end refined fuel imports from russia from Sunday, February 5.

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