How does Russia sell energy products despite Western sanctions?

Russia will continue to find licit and illicit ways to sell energy goods despite Western sanctions. Russia is using its eastern ports, such as Kozmino, to circumnavigate price cap measures and increase its exports of oil and petroleum products to alternative buyers, including China and India.

Can US service providers provide services relating to Russian crude oil?

FAQ 1217 clarifies that U.S. service providers may provide services relating to the maritime transport of Russian crude oil and petroleum products to non-sanctioned persons operating in the energy sector of the Russian economy when the products are purchased at or below the price cap.

Why did the US stop investing in Russia's energy sector?

By September 2014, Western powers strengthened restrictions on Russia’s energy sector, with the United States prohibiting investment in long-term debt and equity of six—and the EU of three—leading Russian energy companies.

Are US sanctions affecting Russia's energy sector?

The United States and European Union began imposing significant sanctions on Russia’s energy sector in 2014. However, both the legacy and new sanctions have largely left Russia’s ability to maintain current upstream production and supply global markets untouched.

Does Russia's oil price cap affect oil exports?

While the price cap has lowered Russian oil export earnings by an estimated 14 percent within the first year of its passage, the Coalition faces challenges in enforcement, with ghost fleets and widespread violations weakening the intended chilling effect of the measure.