FT: Russia has found a simple and effective way to circumvent the oil "price ceiling"
Russia overestimates the cost of oil transportation and related services, which allows it to sell its oil at a price above the limit set by the G7 countries, according to the Financial Times.
Based on information obtained from contracts for the delivery of Russian oil to India in May-July 2023, journalists of the publication found out that in the Baltic ports in tankers are loaded at a basic price of $50 per barrel, which is $10 below the oil ceiling set by the G7. After arrival at Indian ports, the cost of a barrel of oil rises to $66.
Thanks to this scheme, Russia, according to the publication, was able to earn from May to July an additional $800 million. The revenue of the Russian shadow fleet, which carries 40% of the oil, during this period amounted to another $350 million.
The authors of the research suggest that similar practices are used in Russia's oil trade with other countries, including China.