The Group of Seven countries, Australia, and the European Union imposed a $60 per barrel price ceiling on Russian sea-borne crude oil sales late in 2022. February 5 will see the continuation of sanctions on Russia following the alliance’s decision to extend them. In response to the US Treasury official’s update, Goldman Sachs did not put a figure on estimated Russian revenue losses, but said that the price cap has increased shipping costs on some Russian oil cargoes because it forces countries that want Russian oil above the cap to use shadow fleet of non-Western ships and risk using “less trustworthy” insurance. “For every dollar Russia is not receiving revenue, that is one less dollar it can invest into weapons it needs to fight its illegitimate war in Ukraine,” the report continues.
