The sanctions imposed by the West on Russia appears to be working to some extent. Though Moscow’s export revenues have taken a huge cut, a study from the Kyiv School of Economics reported that the vast majority of oil exports out of Kozmino port were carried by ships owned and/or insured by Western companies, who were paying above the $60 dollar per barrel cap. As such, the sanctions were not being fully abided by, yet still managed to make an impact by shrinking Moscow’s war chest.
Data from Argus Media showed that “sanctions premium” involved with shipping Russian oil has also been diminishing. The freight rates for Urals crude have declined throughout April, causing supply to remain high with less demand for tankers. This could be attributed to the upcoming OPEC+ cuts.
It’s yet to be seen if stricter measures are needed to further cut into Russia’s export revenue, but it’s evident that the sanctions have had an effect on their oil and shipping industry.
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