Russia’s economy is beginning to “feel the pinch” after the G7 and other countries imposed a price cap on the country’s oil exports, an expert has said.
Nicholas Farr, emerging Europe economist at Capital Economics, said it was “too early” to fully assess the impact of the sanctions but the “initial signs” showed oil trade had taken a hit.
“High-frequency data show that Russian oil exports have fallen since the sanctions were introduced and the spread between Brent crude oil prices over Urals oil prices widened to a six-month high [last] week,” he said.
In December the G7 countries, the European Union and Australia agreed to a $60-per-barrel price cap on Russian seaborne crude oil because of Russian president Vladimir Putin’s war in Ukraine.
Meanwhile, Russian forces fired some 33 rockets at civilian targets in Kherson as fighting in the strategically important city intensifies, Ukraine’s military said earlier.
The Kremlin has also deployed more tanks and armoured vehicles to the front line, it added.
