The surpassing of the maximum price of Russian oil prompted Western countries to act

Western officials complain that Russian oil trade is above the maximum price of $60.

G7 members had designed the price cap to “keep Russian crude oil flowing into global markets while trying to avoid a supply squeeze and price rise that would benefit Moscow.” However, things did not go exactly as the allies wanted in the oil trade.

According to the Financial Times, the maximum price imposed by the United States on Russian oil sales has been almost completely exceeded, according to Western officials and Russian export data.

After this, Western countries began to look for ways to strengthen the application of the price ceiling, which is one of the most important economic sanctions against Moscow.

STATEMENT FROM THE AUTHORITIES

According to a senior European government official, “virtually none” of maritime crude oil shipments in October were below the $60 per barrel limit that the G7 and its allies are trying to impose.

The official said: “The latest data reveals that we must be tougher. “We absolutely cannot tolerate Russia continuing to do this,” he said.

EU officials also held talks on strengthening enforcement, including options to strengthen enforcement and restrict Russia’s access to the tanker market.

Official Russian statistics on oil sales in October showed the average price per barrel in Moscow was over $80. The jump in Russian oil prices has dealt a blow to the G7’s efforts to limit revenues flowing to the Kremlin.

G7 members and Australia introduced caps on crude oil prices last December, aiming to reduce Russia’s revenue by cutting off access to Western services such as shipping and insurance if traders do not comply with the 60 limit. Dollars.

EXCEEDED THE LIMIT OF 60 DOLLARS

The average price of Ural oil, Russia’s main export, also surpassed the $60 mark this summer, as oil prices rose due to supply cuts by Saudi Arabia and the OPEC+ group. from Moscow.

On the other hand, almost three-quarters of the Russian crude oil transported by sea in August was transported without Western insurance. This indicated that the number of people who began to exceed the price limit was increasing.

It was revealed that only 37 of the 134 ships carrying Russian oil in October had Western insurance. Officials said the number of ships operating below the limit may now be much smaller.

THE STEPS ARE ALREADY

However, G7 members have already begun to accelerate their steps to enforce the border. Last week, the United Kingdom imposed sanctions on Paramount Energy & Commodities DMCC, a company based in Dubai. Britain claimed Russia was “using the company to soften the blow of oil-related sanctions.”

Separately, this month the US Treasury Department requested information from 30 ship management companies about 98 ships it suspected of violating the border. 17 of the 30 companies contacted are from countries that accepted the sanctions. The sixth company is located in the United Arab Emirates. Other companies are located in India, Turkey, China, Hong Kong and Indonesia.