Russia sold $13 billion (€12 billion) worth of oil last month, the Russian Finance Ministry reported. This was more than before the imposition of sanctions aimed at hitting the country’s oil revenues.
Figures from trading platforms also show that Russia is still gaining a lot. For example, the price of Urals oil was higher than the price ceiling set by Western countries months ago, which was $60.
The fact that the Russians still earn a lot from oil sales is probably because they can bring a lot of oil to the world market through bypass routes and at high prices. In addition, many countries did not impose sanctions at all.
Western countries in particular have done so. They want to hit the revenues of the Russian treasury, because the money is used in the war against Ukraine. One measure is a ban on the import of Russian oil to Europe.
In addition, a price ceiling has been set. This means that companies from Western countries are not allowed to provide services to ships carrying oil sold for more than $60 per barrel. This relates, for example, to ship or cargo insurance. For example, there are several marine insurance companies in the UK, which have also imposed sanctions.
Oil prices rose after sanctions were imposed
All these measures seem to work only to a limited extent. For example, the cost of Russian oil has risen to more than $60 since July, then peaked at nearly $80 in early October. So it seems as if Russia has found other ways to trade its oil.
This can be done, for example, by sailing several of our own ships. There are also stories of ships temporarily turning off their transponders, causing them to disappear from radar. In addition, much of Russian oil comes to Europe via other countries that have not imposed any sanctions and that do not themselves have a ban on oil exports from Russia.
The European Union will not leave it at that. Last week, the European Parliament called on member states to monitor compliance with sanctions more strictly. This would prevent more Russian oil from flowing to the European market in the near future.
“Lifelong zombie fanatic. Hardcore web practitioner. Thinker. Music expert. Unapologetic pop culture scholar.”