US Treasury: Russia's oil revenues have fallen significantly

The U.S. Treasury Department has reported that Russia’s oil revenues have fallen significantly following the implementation of the price ceiling. The department has published a progress report on the success of the price ceiling implementation for Russian oil. The report reported that following the implementation of the price ceiling policy, Russia’s oil revenues have fallen significantly compared to both the pre-war and early-war highs. The report stated that the Russian government’s oil revenues decreased by 40 percent in the January-March period compared to the previous year, and that before the war, total oil revenues made up 30-35 percent of Russia’s budget. The report noted that oil revenues will decline to 23 percent of Russia’s budget in 2023. The U.S. Treasury Department report noted that Russia’s oil revenues fell despite the country increasing its oil exports by 5 to 10 percent in April compared to March 2022. The report said that despite initial market skepticism about the price cap, market participants and geopolitical analysts agreed that the price cap achieved its goals of reducing Russia’s oil revenues and ensuring stability in the global energy market. Last year, G7 member states and European Union countries agreed to impose a $60 per barrel cap on oil transported by sea from Russia. Russia, in turn, banned the sale of oil and petroleum products to those who participated in the Russian oil cap by decree signed by President Vladimir Putin.