Russian oil price ceiling did not restrict its exports – Kommersant

The price ceiling mechanism for Russian oil and oil products, introduced by the European Union, the G7 countries and Australia since December 2022, could not limit the supply of these raw materials to world markets. This is the conclusion reached by the experts of the World Bank in report on the prospects for the development of the world economy, which is published twice a year.

The World Bank report states that the introduced price ceiling “is not a binding export restriction” of Russian oil and oil products. World Bank experts note that Russia “changed the destinations of its oil exports without a significant change in volumes.”

In 2022, due to sanctions and a price ceiling, Russia diverted oil supplies to India and China. Deputy Prime Minister Alexander Novak said140 million tons of exports of oil and oil products will be redirected to Asia in 2023, previously these volumes were in Europe. In April, oil imports from Russia to India has reached record.

In February, Deputy Prime Minister Alexander Novak declaredthat Russia in May will reduce oil production by 500 thousand barrels per day (b / d). Then this reduction was extended until the end of 2023. Together with Russia, the OPEC+ countries agreed to reduce oil production in May by 1.6 million b/d.

Read more about the reduction – in the material “Quot a new turn”.

Anastasia Larina