IEA says Russia’s oil revenues fall sharply as West begins to cap price

Russia’s oil export revenues fell sharply in February, the International Energy Agency said on Wednesday, driven by sanctions and price caps designed to shrink President Vladimir Putin’s ability to finance them. war in ukraine,

The IEA said Russia’s estimated oil export revenue fell to $11.6 billion last month, down $2.7 billion from January, when volumes were much higher.

“It remains to be seen whether there will be enough appetite for Russian oil products once the price cap is in place or whether its production will begin to fall under the weight of sanctions,” the group said in its latest. Revenue is already declining. ” oil market report

The energy agency cited the Russian finance ministry as saying that Moscow’s fiscal receipts from oil sales were just 45% of the year-ago level.

The latest figures come shortly after the IEA said in mid-February that the West’s oil war against Russiaintention effect“Despite surprisingly resilient production and exports in recent months.

Ukrainian officials and propagandists have before this called on Western policymakers to increase financial pressure on Russia by targeting its oil revenues to help Kiev win.

The EU embargo on Russian oil products came into force on 5 February, based on a $60 oil price cap implemented by the Group of Seven major economies on 5 December. Ban the import of Russian crude oil by sea route.

Asked on Tuesday whether he was concerned last year that the Russian economy could collapse due to international sanctions, Putin said he was concerned but that Russia’s “economic sovereignty” is now of great consequence. He said the foundations of Russia’s economic stability were “stronger than anyone thought”.

Putin said Russia’s financial system has become stronger and that Western companies that left Russia last year thought the economy would collapse “but it didn’t.”

— CNBC’s Holly Elliott contributed to this report.