Tankers located in the waters near Ceuta, Spain are transferring crude oil from Russia to reach the Asian markets in spite of Western sanctions.
Europa Press News | Europa Press | Getty Images
Russia’s oil revenues rebounded in March and April to reach the highest level since November last year, according to a new report, bolstering President Vladimir Putin’s ability to finance the Kremlin’s onslaught in Ukraine.
Analysis published Wednesday by the Centre for Research in Energy and Clean Air, an independent Finnish think tank, found that Russia’s revenues from oil exports have recovered from levels reached in January and February.
The findings show that Moscow has recently been able to successfully claw back earnings from fossil fuel exports despite the imposition late last year of import bans from the European Union and a broader G7 oil price cap.
It comes less than a week after G7 leaders said at the conclusion of the Hiroshima Summit in Japan that a price cap on Russian oil and petroleum products was working, Russian revenues were down and falling oil and gas prices were benefitting countries around the world.
This is a clear indication that the enforcement is not working.
Lauri Myllyvirta
Lead analyst at the Centre for Research in Energy and Clean Air
Energy analysts at CREA suggested the failure from the so-called Price Cap Coalition to revise price levels and enforce the policy had resulted in the measures “losing traction, integrity and credibility.”
“The EU has failed in its commitment to review the price cap every two months to ensure that it stays lower than the average market price,” said Lauri Myllyvirta, lead analyst at CREA and co-author of the report.
“This is a clear indication that the enforcement is not working,” he added.
A spokesperson for the European Union declined to comment when contacted by CNBC.
Russia’s oil revenue recovery expected to continue
At the start of the year, data showed Russia’s revenue from fossil fuel exports had collapsed in December….
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