In April 2024, Russia’s oil revenues more than doubled compared to April 2023, despite international sanctions – the price ceiling on Russian oil, Bloomberg reports.
According to Bloomberg’s estimate, tax revenues related to oil in the Russian budget soared to 1.053 trillion rubles ($11.5 billion) in April compared to nearly 497 billion rubles in April 2023. According to the agency, Russia’s total revenues from oil and gas in April increased by almost 90 percent year-on-year, reaching 1.23 trillion rubles.
Bloomberg notes that revenue is growing due to the weakening of the ruble and the rise in Urals crude oil prices. Western insurers told the agency that it is difficult to ensure price limits on Russian oil.
At the end of 2022, the European Union, the United States, other G7 countries, and Australia agreed on a price cap for seaborne deliveries of Russian oil, which was set at $60 per barrel. The price ceiling allows Russian oil to be transported on Western tankers and with Western insurance only if the price is below this threshold.
Media reported that sanctions led to the emergence of a “shadow fleet” – aging vessels with limited insurance that intercept potentially profitable shipments of goods subject to sanctions.
In the fall of 2023, the United States began imposing sanctions on tanker owners transporting Russian oil at prices above the maximum level.
