Currently, European companies are still transporting Russian oil despite the price cap.
According to Bloomberg, this is stated in a report by the Helsinki-based Center for Energy and Clean Air Research.
"Russia still relies on European services to transport its oil, even though prices for Russian supplies exceed the price cap set by the Group of Seven," the article says.
It is noted that about two-thirds of Russian crude oil and fuel are transported by ships that are insured or owned by companies in the Group of Seven countries and allies that have introduced the price cap.
"This shows that Moscow is still actively using the European transportation sector," Bloomberg said.-
The price cap was set to keep Russian oil on the world market but to significantly reduce the Kremlin's revenues.
"In addition to using European vessels, Russia has also assembled a so-called shadow fleet of tankers that operate outside the jurisdiction of the states that have imposed sanctions. They usually transport oil over shorter distances, where the same volume can be transported by fewer vessels," the agency says.-
However, the researchers point out that states are not doing enough to enforce the price cap on Russian oil. "More than the use of the 'shadow fleet,' the impact of the oil price cap is weakened by the inability of participating governments to fully enforce the cap and punish violators," said Isak Levy, one of the report's authors.
Author - Serhii Kolomiets, 27/09/2023