Ben Harris: the price ceiling for Russian oil needs to be revised

The price ceiling of $60 per barrel, set by the G-7 countries to curb Russia's export revenues from oil sales, does not bring the expected results. This was stated by Ben Harris, a former senior official of the US Treasury Department, one of the initiators of this measure.

At the same time, Harris said that additional measures could be introduced to increase the pressure of sanctions. He proposes to revise the level of the price «ceiling», making it less comfortable for Russia, but acceptable for the world market.

In September, the Russian Urals export blend was valued at $83.08 per barrel, which is higher than the established «ceiling» of the G7 countries, with an average Brent price of $93.98 per barrel. At the same time, the discount between these two grades decreased to $10.9 per barrel, whereas at the beginning of the year it was about $30 per barrel.

US Treasury Secretary Janet Yellen also recently acknowledged the decline in the effectiveness of current export restrictions and stressed the need for tougher sanctions.

The second measure highlighted by Harris should be increased pressure on countries controlling important sea straits, such as Denmark, Turkey and Egypt, obliging them to refuse passage to Russian tankers that pose a danger to the environment due to their age or lack of reliable insurance.