Treasury Touts 'Success' of Russian Oil Price Cap in Progress Report

The Group of 7 price cap on Russian oil has helped to decrease the Russian government’s oil revenues by more than 40% from January to March, compared with the same period last year, the Treasury Department said in a May 18 progress report on the price cap. “Despite widespread initial market skepticism around the price cap, market participants and geopolitical analysts have now acknowledged that the price cap is accomplishing both of its goals,” Treasury said, adding that the strategy has been a “success.” The report, issued nearly one year after G-7 countries first endorsed the cap, outlines Treasury’s take on the economic impact of the cap and stresses that the U.S. and allies will “continue to coordinate to ensure effective monitoring and enforcement of the policy, including countering evasion of these caps while avoiding spillover effects and maintaining global energy security.