Russian oil price halved after Western sanctions
Russian oil has halved in price since the start of the full-scale invasion of Ukraine (Photo:Lucy Nicholson / Reuters)
“The average price of Urals oil in February 2023 was $49.56 per barrel, which is 1.86 times lower than in February 2022 ($92.15 per barrel),” Russian Finance Ministry said in a report on March 1.
The ministry added that "the average price of Urals oil in January-February 2023 was $49.52 per barrel, compared to January-February 2022 when it was $88.89 per barrel."
As reported in January 2023, Russia's oil and gas revenues fell sharply, leading to the largest January budget deficit since at least 1998.
From Dec. 5, 2022, the EU Council set the top price at $60 per barrel for crude oil exported from Russia by sea. This price cap was previously agreed upon by the countries of the G7 group, together with Australia.
On the same day, the EU imposed an embargo on the import of crude oil from Russia by sea. The United States, the UK, Canada, and Japan imposed an embargo on Russian oil imports in the first days after Russia’s full-scale invasion of Ukraine.
The price cap policy stipulates is that buyers of Russian oil will lose access to Western insurance and other transportation services if they pay more than the price cap prescribes.
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