Russian oil exports have generated $11 billion through a shadow fleet and obscure entities in the year since G7 countries set a price cap on one of Russia’s largest sources of income, Bloomberg reported Wednesday, citing trade data.
In December 2022, the group of rich countries imposed a $60-per-barrel price cap on Russian oil, while the EU banned almost all oil imports from Russia, in retaliation to the Kremlin’s invasion of Ukraine.
Moscow has since rerouted its oil exports to China and India, having exported almost 3.5 million barrels of oil per day in 2023, according to Bloomberg.
Russia’s Finance Ministry data showed net oil revenues almost doubling between April and October, when they totaled $11.3 billion and made up 31% of the country’s total net budget revenue for that month, Bloomberg said.
That was reportedly the highest share since May 2022 and since any single month in the year before Russia invaded Ukraine in February 2022.
Based on Indian customs data, which showed the price paid for Russian oil at an average of $72 per barrel, Bloomberg calculated that about $11 billion of Russia’s petrodollars went through anonymous traders and unknown shipping companies.
Five out of the top eight buyers of Russian oil were unknown entities when Moscow invaded Ukraine, Bloomberg said.
Russia’s domestic and shadow fleet owners together moved more than 70% of Russian oil cargoes in January-September 2023, the publication added.
In response, Bloomberg said the U.S. Treasury has since Oct. 12 sanctioned eight oil tankers for price cap violations, including six owned by Russia’s state oil tanker company Sovcomflot.
U.S. authorities have also inquired about potential price-cap breaches with the operators of around 100 ships.
Russia expected to spend the 1 trillion rubles ($10.7 billion) in extra proceeds from oil and gas sales in the last five months of 2023 toward covering its budget deficit, Bloomberg reported in August, citing two anonymous sources close to the government.