Was Russian simple oil trick successful in evading sanctions?

The G7 oil price cap has been evaded by Russia’s oil exporters, resulting in an extra $1.2 billion in extra shipping costs for oil shipments to India alone.

The cap targets G7-based insurers, brokers, and other service providers, allowing Western governments to cut back on Russia’s income without affecting the country’s oil exports.

By inflating shipping costs, Russian oil exporters were able to push their crude’s all-in net price well above the $60 ceiling. In June, India paid an average of roughly $68 per barrel of Russian oil, significantly more than the $60 ceiling.

Infractions of the oil price cap have also been observed in Russian Pacific commerce, with reports that Russia is selling the ESPO crude grade out of the Far Eastern loading port of Kozmino for prices above the $60 price cap. Some transactions seem to involve an American insurer, and tanker operators have gone to great measures to conceal their activities.

Despite these violations, prominent sanctions cases against participants in the Russian oil trade have not been filed. European commodity merchants have been encouraged by the US to continue trading in Russian oil, supporting export flows and assisting in maintaining low global crude prices.