‘Outlook for Russian oil industry is pretty bleak,’ CSIS fellow says
Published 10:00 AM, December 14, 2022
Nearly 10 months into Russia’s war on Ukraine, the U.S. and its allies are still trying to find ways to weaken Russia’s economy. On Dec. 5, a ban on all imports of Russian oil by ship went into effect, and more than three dozen countries have agreed to place a price cap on the oil Russia can sell.
The price cap was set at $60 a barrel to deprive Russia of oil revenues while also not shocking the global oil market, Ben Cahill, senior fellow at the Center for Strategic and International Studies, said.
Russia’s oil industry has lost technical partners and investment partners, and a lot of companies are refusing to do business with Russia, according to Cahill.
Minimizing oil revenue is the key to creating pressure on Russia’s economy, Cahill explained.