Sanctions on Rosneft are working

The policy of capping Russian oil prices has significantly reduced Moscow’s revenues.

The “price ceiling” for Rosneft in just 6 months led to a significant decrease in Russia’s income at a key stage of the war. This was stated by US Deputy Treasury Secretary Wally Adeyemo.

Adeyemo hailed the price cap as a success, saying the Russian government’s revenue from oil sales in the first five months of 2023 had fallen by nearly 50% from a year earlier. Oil revenues fell even as Russia increased fuel exports.

Now the Kremlin is desperately trying to implement changes in tax policy that would help the aggressor country cope with “discounts” on the energy carrier. Under this approach, Russian oil companies’ taxes will rise even as price caps continue to reduce their actual revenues.