Russian Oil Deliveries Keep Getting Cheaper Despite Sanctions
- Russian oil has been above a G-7 price cap for months on end
- Cheaper oil freight blunts the impact of western sanctions
The price of delivering Russian crude to customers in Asia has tumbled to the lowest since October.
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
Group of Seven sanctions aimed at depriving the Kremlin of petrodollars are failing in one of their key objectives: driving up the cost of delivering Russian oil.
The price of delivering the nation’s flagship Urals crude to customers in Asia from Russia’s Black Sea port of Novorossiysk has tumbled to the lowest since October, according to data from Argus Media Ltd. Even a theoretical cost — attributable only to sanctions — has sagged, the pricing agency estimates.