According to journalists, Russia managed to sell its crude oil above the 60 dollar limit. The Kremlin has created a complex supply chain that makes it difficult to enforce restrictions.
The United States wants to punish the Russian Federation for violating the non-oil price cap. Washington plans to take steps to ensure compliance with restrictions previously imposed by G7 countries. The Wall Street Journal writes about this.
The United States is closely monitoring compliance with all restrictions, according to U.S. Treasury Secretary Janet Yellen.
“We are monitoring compliance very closely and want to make sure market participants understand that the United States is taking this price cap seriously,” he said.
Journalists noted that Russia managed to sell its crude oil above the $60 limit for several weeks, with benchmark prices rising to $85 per barrel in late September, raising questions about whether companies were violating the limit.
Kpler crude oil chief analyst Victor Katona told reporters that market sentiment was that there were no enforcement measures on compliance and that the cap mechanism was not working as intended. Russia has developed a complex oil supply chain to end customers. This approach poses a problem for any attempt to monitor how the restriction is implemented. Trading companies appear to purchase oil from Russian ports at reasonable prices and then sell it directly offshore on several occasions. It is almost impossible to track such sales.
It should be noted that at the end of September the media reported that the price of Russian oil continued to rise despite the G7 price ceiling. According to journalists, European insurers and shipowners continue to work with Russian oil.
Source: Focus
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