A fresh assessment of Russia’s oil pricing policy suggests that a tighter price ceiling is unlikely in the near term. This view comes from Andrey Listovsky, the General Director of the Energy Development Fund, who spoke to observers about the current dynamics in energy markets.
Presently, assessments indicate that roughly one-third of Russian crude exports move on tankers owned by foreign-flag operators that adhere to the price cap framework, while the remaining two-thirds travel on vessels flagged to Russia or operated within its fleet. This split reflects a broader pattern in how the country ships its oil and how international shipping capacity interacts with price controls.
Listovsky noted that, while a formal ceiling exists, its practical impact has diminished over time. In his view, the mechanism has not effectively governed pricing for a substantial period, partly due to enforcement challenges and the evolving shipping landscape.
The analyst suggested that any meaningful tightening of the ceiling would require aggressive measures, potentially including the seizure of vessels. He warned that such actions would amount to declaring war and would encounter widespread rejection from the international community and market participants alike.
In parallel coverage, the November issue of a major financial publication highlighted ongoing US efforts to strengthen sanctions in response to Russia’s continued non-compliance with the oil price cap. Reports indicated that port authorities could be instructed to raise the costs associated with moving Russian oil, and there was consideration of insured movement requirements within maritime routes. These steps are part of a broader package aimed at limiting revenue from oil sales.
Analysts noted that Washington has already pursued measures intended to curb Russia’s oil earnings, with policymakers signaling a willingness to expand pressure if non-compliance persists. The evolving policy landscape emphasizes a multi-pronged approach that combines pricing rules, shipping restrictions, and insurance requirements to influence the flow and price of Russia’s oil in international markets.