U.S. aims to tighten rules on trading Russian oil, Reuters reveals details
Illustrative photo (Photo: Getty Images)
The U.S. will demand more information from freight shippers about their deals with Russian oil in an attempt to ensure compliance with sanctions against Russia, according to Reuters.
"A significant amount of (Russian) oil can in fact flow outside the G7," one official said.
It is noted that for most of last summer and all through the fall, Russia sold oil above the capped levels through two different channels. One was the coalition's services for trade use (G7), which did not comply with requirements.
"And second via this alternative fleet, which used to be a small part but grew significantly," Reuters reports.
Officials have stated that besides targeted sanctions, they are insisting on 'cost granularity' where Russian buyers of oil present documentation to Western insurers and freight shippers confirming that the trade was within the restrictions.
Sanctions' effectiveness
The effectiveness of sanctions has decreased due to insufficient monitoring and adherence to the price limitation policy, allowing Russia to sell its oil at prices higher than the set limit, the authors note.
Furthermore, a loophole in oil refining legally permits oil products made from Russian crude oil to reach countries in other parts of the world. This primarily concerns India, which has significantly increased its oil imports from Russia.
Earlier, U.S. Treasury Secretary Janet Yellen stated that Washington was preparing to take harsh measures for violations of the established oil price cap.
Additionally, the U.S. government intends to halve Russia's revenues from oil and gas exports by 2030.
