G-7 price ceiling on Russian oil not low enough to hit Kremlin’s revenues
The Group of Seven’s price ceiling on Russian oil exports isn’t low enough to take a big bite out of the Kremlin’s revenues next year and economists say even if it does lead to a drop in crude production, Vladimir Putin still has plenty of cash for his war effort, at least for now.
At $60 per barrel, “the price cap looks very generous,” said Renaissance Capital economist Sofya Donets. “It is close to what was priced in by the market for 2023 and to the level suggested in Russia’s budget.”
European officials touted the cap — negotiated last week after months of haggling among the US and its allies — as a way to starve Russia’s war machine.
