Russian oil prices lowest since full-scale war began, Bloomberg reports
Russian oil prices have dropped to the lowest level since the outbreak of the full-scale invasion of Ukraine, as Western sanctions take their toll, Bloomberg reported on Dec. 16.
The prices dropped to just over $40 per barrel on average for Russian crude shipped from the Baltic Sea, the Black Sea, and the Kozmino port in the Far East, the outlet wrote, citing Argus Media data.
The news comes less than two months after the U.S. slapped sanctions on Russia's two largest oil companies, Rosneft and Lukoil, as part of efforts to pressure Moscow into a peace deal.
According to Bloomberg, the trading price has slumped by 28% over the past three months, with global benchmark prices also declining.
Oil and gas revenues account for approximately one-third of Russia's federal budget, making energy exports a crucial source of funding for its war efforts.
After the outbreak of the war in Ukraine, the EU has mostly halted imports of Russian oil and plans to phase out Russian energy imports completely by the end of 2027.
The G7 countries also imposed a $60 per barrel price cap on Russian crude traded on global markets, with most of Kyiv's partners lowering the cap further to $47.60 earlier this year.
Seeking new markets, Russian companies have been offering discounted crude to other buyers, namely India and China. The Trump administration imposed a 25% tariff on India — in addition to the existing 25% rate — to pressure it to reduce its reliance on Russian supplies.
Moscow's fossil fuel revenues in 2025 are expected to be almost half of last year's value, marking the lowest monthly revenue level since 2020, a development driven by lower global oil prices and a stronger ruble.
