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IMF sees little impact of price cap on Russian oil exports

WASHINGTON: The International Monetary Fund (IMF) expects a price cap imposed by Western countries on the volume of Russian oil exports to have little impact, according to the IMF’s World Economic Outlook update.

"At the current oil price cap level of the Group of Seven, Russian crude oil export volumes are not expected to be significantly affected, with Russian trade continuing to be redirected from sanctioning to non-sanctioning countries," the document said.

The G7 countries, the European Union and Australia have capped the price of Russian seaborne oil at $60 per barrel for their subordinate vessels and territories as of Dec. 5.

In addition, from Feb. 5, 2023, a price cap on petroleum products will come into force, its parameters are to be established later.

On Dec. 27, Russian President Vladimir Putin signed a decree on countermeasures, which prohibits the supply of Russian oil from February to buyers who have joined these sanctions.

At the same time, in a separate paragraph, the head of state reserved the right to make special decisions on supplies of oil and petroleum products, the implementation of which is prohibited by this decree.

The Russian Energy Ministry was instructed to monitor the implementation of the ban.

The document enters into force on Feb. 1, 2023 and is valid until July 1, 2023

Source: Philippines News Agency