Ukraine aims to lower ceiling price of Russian oil to at least $45 per barrel
Due to the oil embargo and lower price caps, Russia will receive half as much revenue from oil exports this year. Ukraine proposes to further reduce the price ceiling, the press service of the Ministry of Economy reports.
"While last year's oil and gas exports by Russia amounted to $349 billion, this year, according to experts, Russia will receive about $173 billion from these exports," the statement reads.
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According to Deputy Economy Minister Oleksiy Sobolev, the Ukrainian side is seeking to reduce the price ceiling from $60 per barrel to $45 or even $30 to cut off Russia's war profiteering even further.
Russia has increased its oil exports to the maximum. The International Energy Agency notes that Russia has not fully implemented the announced reduction in supplies by 500,000 barrels per day.
Restrictions on Russian oil and oil products supplied by sea are set at the following levels:
→ oil – $60 per barrel (starting from December 5, 2022)
→ diesel and other expensive oil products – $100 per barrel (starting from February 5, 2023)
→ fuel oil and other low-cost oil products – $45 per barrel (starting from February 5, 2023).
The coalition members agreed to review the cap once a month to keep it 5% below the average market price for Russian oil and oil products. The first review of the Russian oil price ceiling was supposed to take place in February, but it was postponed to March 2023. In April, the G7 decided that there were no grounds to change the restrictions.