Russia extends countermeasures against Western oil price cap

Russian President Vladimir Putin has signed a decree extending Moscow's retaliatory measures in response to a Western price cap on Russia's oil until June 30, 2025, according to a document published. The original decree, issued on December 27, 2022, banned the export of Russian oil and petroleum products under contracts that included the price ceiling set by the Group of Seven (G7) countries, the EU, and Australia, reports Xinhua news agency.

It has been extended multiple times, and the latest extension was to remain in force until December 31, 2024.

In December 2022, the EU placed a price cap of $60 per barrel on Russian seaborne crude oil, a move adopted by the G7. From February 5, 2023, similar price restrictions were applied to petroleum products from Russia.

Meanwhile, despite the sanctions, the revenue of Russia's large and medium-sized oil and gas enterprises increased by 34.2 per cent year-on-year in the first half of 2024, reaching 38.3 trillion rubles (about $413 billion), local media reported on Wednesday.

According to a study conducted by the auditing and consulting network FinExpertiza, non-resource companies also saw growth, with revenues rising by 19.5 per cent to 98.7 trillion rubles (about 1 trillion U.S. dollars).

The oil and gas sector's share of total corporate revenue in Russia increased to 28 per cent, up from 26 per cent a year earlier. Overall, corporate turnover grew by 23.3 per cent.

FinExpertiza experts attribute the significant growth in oil and gas revenue to a weak ruble and rising global oil prices.

The non-oil and gas sector, which accounted for 72 per cent of total revenue, also grew more modestly at 19.5 per cent in the first half.

Although slower than oil and gas, the non-resource segment showed strong recovery after sanctions, particularly in the manufacturing sector, with industries such as metal products, electronics, and automotive manufacturing driving growth.