US Senior Advisor For Energy Security Says G7 Price Cap On Russian Oil Yields Results

MOSCOW (UrduPoint News / Sputnik - 13th January, 2023) US Senior Advisor for Energy Security Amos Hochstein said on Friday that the G7 price cap on Russian oil, aimed at limiting Moscow's oil export revenues, has yielded the desired result to date.

"As oil prices have come down, there is no doubt that the price cap has, so far, and there is a long way to go, as we sit today, achieved our interest, which was to have continued supply of oil on the market to support economic growth while limiting the value that oil makes for (Russian President Vladimir) Putin," Hochstein told the CNBC broadcaster.

Western countries have been seeking ways to limit Russia's income from oil and gas exports, as well as their dependence on Russian fuel since the country launched a military operation in Ukraine on February 24.

On December 5, the European Union placed a price cap of $60 per barrel on Russian crude oil, joined by the G7 nations and Australia.

In late December, Putin signed a decree banning supplies of Russian oil and petroleum products if contracts directly or indirectly provide for a price cap. According to Kremlin spokesman Dmitry Peskov, the Russian president did not consult with OPEC+ allies before signing off on the response measures.

According to the latest estimates by the Helsinki Centre for Research on Energy and Clean Air, Russia's losses due to the oil price ceiling will amount to 160 billion Euros ($171.7 billion). Helsinki expects that after the start of the embargo on February 5, this figure will rise to 280 billion euros.