Moscow's oil revenues drop to lowest level in two years
Photo: Moscow is losing oil revenues (Getty Images)
The cost of Russian crude oil shipments in May 2025 hit a two-year low. Urals oil is now selling at around $52 per barrel, Bloomberg reports.
According to tanker tracking data compiled by Bloomberg, the average volume of shipments was 3.39 million barrels per day over the four weeks leading up to May 25. The gross value of these cargoes turned out to be the lowest since April 2023.
The value of Russian seaborne crude oil exports has been trending downward for more than 13 months. Since export revenue peaked at around $1.95 billion per week during the 28 days ending April 21, 2024, the price of Russian crude oil has dropped by 28%, and shipment volume has decreased by about 8%.
bloomberg.com
As Bloomberg notes, it remains unclear whether sanctions have played a significant role in any of these trends.
However, G-7 countries are considering lowering the price cap, above which Russian crude oil exports cannot use Western ships or services, from the current level of $60 per barrel to $50.
Since Urals oil is now selling at around $52 per barrel, the cap is not having a significant impact. Even if it is lowered, the price cap may not restrict flows, as Russia has built up a massive shadow fleet of tankers to keep its oil moving without Western involvement.
Sanctions imposed on these ships by the United Kingdom and the European Union appear to have had little effect, as buyers in China and India have allowed blacklisted vessels to unload at their ports, tracking data shows. US measures seem more effective, but even they are starting to be ignored.
US President Donald Trump stated that he was "absolutely" considering new sanctions against Russia in connection with the ongoing offensive in Ukraine, although he did not provide any details.
Export value
Moscow's gross export value fell by approximately $20 million, or 1%, to $1.26 billion for the week ending May 25, while the drop in flows was partially offset by a slight increase in average weekly prices.
Export prices for Russian Urals oil from the Baltic rose by about $0.30 per barrel to an average of $51.80, while Black Sea cargoes rose by $0.20 to $52.40 per barrel. The price of Pacific ESPO crude dropped by about $0.20 to $57 per barrel. Prices for deliveries to India remained virtually unchanged at $62.90 per barrel.
As previously reported, the European Commission and leading EU countries propose lowering the price cap on Russian oil from $60 to $45 per barrel.
However, this decision was not adopted at the G7 financial meeting in Canada, as the United States refused to support lowering the cap.
