Finnish firm CREA found that Moscow’s energy income in April rose to the highest level since last November.
According to a new study by the Finnish Center for Clean Energy and Air Research (CREA), Russia’s oil export earnings have increased in recent months despite G7 price caps and other restrictions imposed by the West.
Russia’s oil revenues have started to recover after falling sharply in February after G7 price caps on the country’s oil and refined petroleum products and a ban on imports of EU-carried oil came into effect in March, the think tank said. In April, revenue rose another 6% month-over-month, reaching the highest level since last November.
Analysts say that while current revenues are still significantly lower than the same period last year, the upward trend shows that Western sanctions on Russia’s oil exports are losing momentum.
“In April, Russia’s export earnings fell significantly compared to the previous year, mainly due to the EU import ban and lower oil prices… However, Russia was able to export the main type of crude oil (Urals) for the first time. , at a price always higher than the threshold price,CREA chief analyst Laurie Millivirta told CNBC about it. noted that he had determined “main disadvantages“applying the price ceiling policy, unless they are approved”this threatens to permanently undermine the price ceiling mechanism.»
CREA data showed that since the import ban and price cap came into force, Russia has earned a total of about 58 billion euros ($62.5 billion) from oil exports. Analysts pointed out that the increase in income is due to the increase in export prices, which is due to the fact that the West has set price ceilings too high.
“By setting the ceiling price of crude oil at 30 dollars per barrel (instead of 60 dollars) and revising the limits of oil products accordingly, Russian revenues could be reduced by 22 billion euros (37%).CREA experts wrote.
They noted the further recovery of Russia’s oil revenues.undermining the effectiveness and credibility of sanctions.»
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