The G7, the group of seven nations,
aimed to cripple Russia's oil revenue by imposing a price
cap of $60.00 per pattern.
However, the effectiveness of this strategy is under growing scrutiny.
80% of Russian oil tankers have reportedly left the coverage
of insurance companies aligned with the G7.
Now this creates a shadow fleet operating outside the price
caps reach the price of Russia's flagship Urals.
Crude oil has also consistently exceeded $60.00 a barrel.
This raises questions about whether the cap is actually limiting
Russia's income.
A key insurance provider for the global shipping industry has
expressed concerns about the G7 price caps enforceability.
Their data shows a dramatic decrease in coverage from for
Russian oil shipments in April 2024,
only 16% of Russian oil cargoes were insured by companies
adhering to the G7 gap.
The group suggests broader international collaboration to effectively limit Russia's
oil revenue.
The submission also notes that the success of the oil
price gap hinges on cooperation from major buyers like China
and India.