Treasury Department Reports Successful Results of Price Cap on Russian Oil after One Year

The U.S. Department of the Treasury has released a progress report highlighting the success of the price cap on Russian oil in achieving its objectives. The price cap, endorsed by G7 leaders led by President Biden, aims to reduce Russia’s revenue while maintaining stability in the global energy market. The report shows a significant decline in Russian federal government oil revenues, which have fallen by over 40% compared to the previous year. Despite exporting more crude oil, Russia has been compelled to adjust its oil taxation system to accommodate the discounted value imposed by the price cap. The report emphasizes that the price cap has been effective in achieving its goals, with both market participants and analysts recognizing its impact.