Russia’s flagship crude oil, Urals, has sold at less than half of international prices and below the G7-imposed price cap amid Western sanctions, impacting its ability to wage its full-scale war against Ukraine, reported Bloomberg on Jan. 9.
On Jan, 6, the price of Russia’s Urals grade stood at $37.80 a barrel at the Baltic Sea port of Primorsk, said Bloomberg, citing Argus Media.
Meanwhile, the global benchmark Brent stood at $78.57 on the same day.
On Dec. 5, the EU and G7 nations agreed on a $60 price cap for Russian crude oil. The EU also imposed an embargo on maritime deliveries of Russian oil. After the ban's first week, total Russian exports dropped by 54%.
Bloomberg cites the loss of the European market, putting Russia at the “mercy of a tiny pool of large buyers,” such as China and India, as a potential reason for the prices.
On Jan. 10, Russia’s Energy Ministry said it is working on additional measures to limit discounts to international benchmarks on Russian oil prices following Western price caps, Reuters reported, citing Russian state-controlled media TASS.
On Dec. 27, Russian President Vladimir Putin signed a decree to ban oil and oil product exports to countries complying with the Western price on Russian crude. The ban will reportedly come into effect on Feb. 1, but the date for the oil products ban will be determined by the Russian government and could be after Feb. 1.