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Russian Oil Revenues Tumble Due To Price Cap, U.S. Treasury Says


An oil tanker is moored at the Sheskharis complex in Novorossiysk, Russia.
An oil tanker is moored at the Sheskharis complex in Novorossiysk, Russia.

Russia's oil revenues have suffered a marked decline since Western countries slapped a price cap on Russian crude as punishment for the invasion of Ukraine, the U.S. Treasury Department said on May 18. The department said that despite widespread initial market skepticism around the price cap, market participants and geopolitical analysts now acknowledge that it is accomplishing both of its goals -- keeping Russian oil on the market while depriving Russia of significant revenues. The treasury, citing Russian Finance Ministry figures, said federal government oil revenues were down over 40 percent between January and March compared to last year.

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