According to informed sources, the US Assistant Secretary of the Treasury, Eli Adaimo, stated that Russian government revenues from oil sales have declined by approximately 50% during the first five months of this year, following six months since the implementation of price ceilings.
Adaimo explained, during a pre-prepared statement at a seminar in Washington, that Russia’s oil revenues have declined compared to the previous year, “despite Russia currently exporting more crude oil compared to the early stages of the war.” He added, “Despite the increase in exports, Russia earns less money because its oil is sold at prices 25% lower compared to others in the world,” according to Agence France-Presse.
When asked about the mechanism used by Washington to estimate Russian revenues, an official at the US Treasury, who requested anonymity, stated that the United States has several tools, including monitoring market prices received by Russian oil-exporting entities.
The US official confirmed that Russian officials also pointed out the pressures resulting from the decline in oil revenues, although no specific date has been set to lift the price ceiling imposed on Russian oil.
Currently, Russia is considering abandoning tax mechanisms based on the Urals crude oil market prices, which serves as a pricing reference and is the dominant type of Russian crude oil.
Adaimo noted that Russian authorities may calculate taxes based on an assumed price that includes “a significant discount on Brent crude oil, the global benchmark.”
He explained that this direction would result in increased taxes on Russian oil companies while revenues continue to decline due to price ceilings.
According to Adaimo, the sanctions and export restrictions imposed on Russia have hindered its efforts to compensate for the loss of about 10,000 pieces of military equipment during the war.
In December, a coalition consisting of the Group of Seven (G7) countries, the European Union, and Australia set a price ceiling for Russian crude oil at $60 per barrel to limit Moscow’s revenues in response to its invasion of Ukraine while ensuring the continued supply to the global market.