Russia lost $172 million every day due to the “ceiling of prices” for oil
12.01.2023 - 10:00
Due to oil price restrictions by the G7 countries and EU sanctions, russia loses $172 million every day
Russia loses $172 million, or 160 million euros, per day, Bloomberg reports with reference to the Finnish Center for Energy and Clean Air Research (CREA).
According to the Center’s report, Moscow’s lost profit will increase to $280 million per day, when from February 5 the restrictions will also be extended to oil products.
Among the evidence of Russia’s losses from the oil “price ceiling” is the drop in the price of the main grade of Rosneft Urals to less than $40 per barrel.
“The EU oil ban and oil price caps have finally come into effect, and their impact has been as significant as expected,” said CREA lead analyst Laurie Mullivirta.
If the EU lowers the price threshold from the current $60/barrel to $25-35/barrel, then this price will still be higher than the costs of oil production and transportation in Russia. But the new restriction will reduce the terrorist country’s income from the export of raw materials by at least another 100 million euros per day.
According to Mullivirta, it is extremely important for Europe to lower the price ceiling to a level that will deprive Russia of the opportunity to receive taxable oil profits, as well as limit the import of the remaining oil and gas from the Russian Federation.
It will be recalled that since December 5, the “Big Seven” countries and Australia introduced price restrictions for Russian oil delivered by sea to $60 per barrel. At the same time, EU sanctions came into force, prohibiting the import, purchase and transportation of Russian oil to the EU and third countries.
According to the restrictive mechanism, the ban will not apply to the provision of professional assistance, intermediary services and financing for the transportation and trade of Rosneft, which is sold to countries outside the EU at a price lower than the threshold.
