FSUOGM: Russia avoids most of the G7 oil sanctions on its exports

Russia has managed to avoid G7 sanctions on most of its oil exports, a development that will bolster the Kremlin's revenues as crude oil prices surge towards $100 per barrel, the Financial Times reported on September 24. 

In August, almost three-quarters of all seaborne Russian crude flows did not involve western insurance, which is used to enforce the G7's $60 per barrel oil price cap, according to an analysis of shipping and insurance records by the FT.

This represents a significant increase from about 50% in the spring, indicating that Moscow is becoming more adept at bypassing the cap, allowing it to sell more oil at prices closer to international market rates.

The Kyiv School of Economics estimates that this shift, combined with Russia's success in reducing the discount on its oil, will result in at least $15bn higher oil revenues for the country in 2023.

If you’d like to read more about the key events shaping the former Soviet Union’s oil and gas sector then please click here for NewsBase’s FSU Oil and Gas Monitor.