Enforcement of G7 price cap hitting Russian oil- US treasury official

U.S. enforcement of the G7’s price cap on Russian oil since October is hitting the price Russia can get for its oil in global markets and reducing revenues for its war on Ukraine, a U.S. Treasury official told reporters on Thursday.
The discount of Russian Urals crude oil to international benchmark Brent crude has fallen about 40% since the U.S. started increasing enforcement of the G7’s price cap by placing sanctions on tankers suspected of carrying Russian crude priced above the $60 a barrel cap.
The price cap imposed by the Group of Seven countries, the European Union and Australia bans the use of Western maritime services such as insurance, flagging and transportation when tankers carry Russian oil priced at or above $60 a barrel. The West imposed the mechanism after Russia’s February, 2022 invasion of Ukraine.