G7 Russia Oil Price Cap Still Effective: US Treasury

The G7 price cap on Russian oil remains effective at limiting Russia’s revenue and oil supplies, Eric Van Nostrand, assistant secretary for economic policy at the U.S. Department of the Treasury said Sep. 4.

• “Over the course of the past year, we feel very good about where we are,” he told the APPEC conference.
• This is despite most Russian crude and fuel exports from the Baltic and Black Sea now trading above the price caps.
• Van Nostrand said that there is no concrete plan to raise the price cap, but the G7 will continue to monitor the market and will react accordingly.
• Under the price cap, a Russian oil cargo needs to be sold below a certain threshold to be eligible for access to Western services such as insurance and vessels. This is set at $60/b for Urals crude.