Russia tax revenue from oil exports down on price cap: US
WASHINGTON
Russia's tax revenue from exports of oil and petroleum products has fallen significantly after a price ceiling was enacted by the United States and its allies to restrict funding for its war in Ukraine, U.S. authorities have said.
In a statement published by the Treasury Department, the allies also announced that rules surrounding the price cap will be tightened.
To reduce Moscow's revenues after its invasion of Ukraine while ensuring the supplies to the global market, a coalition involving the Group of Seven leading economies, the European Union and Australia set a price cap of $60 per barrel of Russian crude last December.
Since then, for the January to November period this year, Russia's tax revenue from oil and petroleum goods exports slipped 32 percent from a year ago, said the Treasury Department.
Because of the price cap, Russia had the option to either sell discounted oil to coalition countries or invest in building an alternative ecosystem, the coalition said in the statement, announced by Treasury.
"Both those options cost Russia money that would otherwise go to the battlefield," said the document.
Treasury added that the coalition was tightening the compliance regime for the price ceiling.
Service providers from the coalition will be required to receive evidence from counterparties each time they lift or load Russian oil.
Those with access to itemized costs will also be required to share the details upon request.
