Russian Urals oil is trading well above the price limit set by the Group of Seven (G7) nations of $60, indicating a substantial violation of this sanction measure, as reported by Bloomberg.
Urals crude, exported from ports in the Baltic and Black Seas, is priced at approximately $75 per barrel. The rise in prices is attributed to broader geopolitical dynamics.
The G7 restriction stipulates that any Western company involved in the transportation of Russian oil must obtain a certification, verifying that the cargo costs $60 per barrel or less.
Without this certification, they are not authorised to provide their services.
Although Urals crude has remained above $60 for most of the year, this month’s surge beyond $70 raises doubts about the reliability of these certificates for traders.
When Urals crude arrives in India, its purchasing price reaches $88 per barrel, just $3.80 lower than Brent crude.
Another Russian oil, ESPO, exported from ports in Eastern Russia, costs $84 per barrel.
The disparity observed between the market prices of Russian oil and the G7’s designated price ceiling highlights the inherent difficulties in enforcing sanctions and calls for the implementation of more robust and efficient strategies.
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