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Why oil import restrictions hurt Russia more than the price cap
Russia’s crude oil revenues declined substantially in 2022 and 2023 as voluntary and formal sanctions were imposed in response to the invasion of Ukraine. The formal sanctions imposed at the end of 2022 comprised an embargo on Russian crude oil imports and a price cap that allowed countries not participating in the sanctions the use of Western maritime services for imports of Russian crude at prices below the cap. There has been an ongoing debate among policymakers and academics about these sanctions and their effectiveness (e.g. Johnson et al. 2023). In recent research (Kilian et al. 2024), we make the case that ... (full story)