Russian oil revenues falling because of price cap

Russian oil revenues are falling due to the price cap that Western countries imposed on its crude oil shipments and, ahead of further caps on Russia’s oil products, Europe is well positioned to manage any price pressures, a U.S. Treasury official said on Wednesday.
The Group of Seven countries, Australia and the European Union will extend sanctions on Russia for its war in Ukraine by putting a price cap on its oil products, such as gasoline and diesel, on Feb. 5. The coalition placed a $60 per barrel limit on sea-borne Russian crude oil sales late last year.
Russia is losing a great deal of money daily because of the cap, the senior Treasury official told reporters in a teleconference.
“For every dollar Russia is not getting in revenue, that’s one less dollar they can use propping up their economy, or investing into weapons they need to fight this illegitimate war in Ukraine,” the official said.