U.S. initiates 2nd phase of price control for Russian oil exports, Bloomberg reports
Illustrative photo (Photo: Getty Images)
The U.S. signals the intensification of measures to ensure compliance with price limits on oil in Russia, according to Bloomberg.
"Since October, the US and its allies have been imposing sanctions on entities deemed to have breached the cap on Russian crude exports," the material states.
Now, U.S. officials claim they've entered the second phase of the restriction regime, which will focus more on law enforcement.
This will involve an emphasis on compliance by service providers in the G7 countries who continue to assist in the transportation of Russian oil, ensuring they stay within the limit.
Effectiveness of sanctions
The effectiveness of sanctions has decreased due to inadequate monitoring and compliance with the oil price restriction policy, allowing Russia to sell its oil at prices higher than the established limit, note the authors.
Additionally, a loophole in oil refining legally permits petroleum products made from Russian crude oil to reach countries in other regions of the world. This primarily concerns India, which has significantly increased its oil imports from Russia.
Recently, it was reported that the U.S. government intends to halve Russia's revenues from oil and gas exports by 2030.
Reuters also reported that the U.S. would demand more information from cargo shippers about their deals with Russian oil in an attempt to ensure compliance with sanctions against Russia.
