Now’s the Time to Toughen Russia Oil Sanctions: Oil Strategy
- Existing price cap is failing to erode the Kremlin’s war chest
- Cutting Moscow’s funds needs action to reduce fuel shipments
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Falling oil prices and an impending period of over-supply could create the perfect opportunity to toughen sanctions on Russian supplies to the point where they actually start to bite into the Kremlin’s war chest, writes Bloomberg oil strategist Julian Lee.
The existing price-cap mechanism, which really hasn’t crimped Moscow’s oil income, was introduced at the urging of a US administration concerned that actually hitting Russia’s exports would send prices rocketing.