US Treasury Department: Russia’s Oil Revenues Have Fallen Significantly

The US Treasury Department has published its progress report on the success of the implementation of the price ceiling for Russian oil.

The report noted that after the implementation of the price cap policy, Russia’s oil revenues fell significantly compared to pre- and early-war highs.

Indicating that the Russian government’s oil revenues in the January-March period fell by 40 percent compared to last year, the report says that the sum of pre-war oil revenues constituted between 30 and 35 percent of Russia’s budget.

In the report, it was noted that oil revenues dropped to 23 percent of Russia’s budget in 2023.

Russia’s oil revenue fell in April, even as the country increased its oil exports by 5 to 10 percent in April compared to March 2022, according to the US Treasury Department report.

Despite initial skepticism about the price cap, market participants and geopolitical analysts agreed that the price cap met Russia’s goals of reducing oil revenue and stabilizing the global energy market, according to the report.

WHAT HAPPENED?

G7 member states and European Union countries agreed last year to apply a maximum price of $60 a barrel to oil transported by sea from Russia.

Russia, for its part, prohibited the sale of oil and petroleum products to those who participated in the request for the maximum price of Russian oil, with a decree signed by President Vladimir Putin. (AA)