The Kremlin for the first time since the beginning of the full-scale invasion of Ukraine admitted that Western sanctions are affecting the Russian economy. Russia has problems with oil exports due to the "price cap", said Russian Deputy Prime Minister Alexander Novak in an interview with the Russian news agency TASS.
According to him, Russia has problems with the insurance of ships that are used to export oil and has not been able to launch its tanker insurance mechanism to replace Western insurance.
Novak avoided answering a clarifying question about the share of Russian companies in the market for insurance of oil exports.
Answering a question about possible restrictions on Russian petroleum products, which Western countries intend to introduce beginning February 2023, Alexander Novak said that "Russia in this case can increase oil exports in response."
The European Union has introduced a price cap on Russian oil, setting it at $ 60 per barrel. Poland, Germany, Sweden, Great Britain, France, Finland, Romania, and Lithuania completely abandoned sea imports of Russian oil. Italy has cut oil imports threefold. From February 5, 2023, imports of Russian petroleum products will also be prohibited.