U.S. wants to halve Russia's energy revenues by 2030 - State Department

U.S. wants to halve Russia's energy revenues by 2030 - State Department

The United States government aims to halve Russia's oil and gas revenues by the end of this decade.

According to Ukrinform, this was stated in an interview with the Financial Times by Geoffrey Pyatt, Assistant Secretary of State for Energy Resources, U.S. Department of State.

The United States will do everything possible to make this (halving Russia's revenues by 2030 - ed.) happen. The purpose of these sanctions is to change Russia's behavior and make sure that Putin, when a certain peace is achieved, does not use three or four years to rearm and prepare his army for the third stage of the invasion of Ukraine, Pyatt said.

Today, Russia continues to export large volumes of oil after its full-scale invasion of Ukraine.

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However, the International Energy Agency predicts that these exports could fall by at least 40-50% by 2030 if Western sanctions on the Russian energy industry are maintained.

Last year, the G7 countries imposed a price cap on Russian oil exports that aims to keep crude oil flowing but reduce the Kremlin's revenue.

According to the rules, non-G7 countries can continue to buy Russian crude oil, but must pay less than $60 per barrel if they want to use Western ships or insurers.

Imports of Russian oil to the EU, the U.S., and other G7 countries are mostly banned.

Although these measures initially led to a sharp drop in Russian oil prices, the Kremlin later created a new network of traders and ships to circumvent these restrictions by allowing oil to be sold to buyers, mainly in India and China, at prices above the price cap.

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Much of this oil is transported through a "shadow fleet" of ships whose opaque ownership is difficult to restrict through sanctions. Some oil is still transported by Western ships operating with Western insurance.

Pyatt assured that the United States is now looking for ways to make this shadow fleet less effective.

As Ukrinform reported, Russia is facing serious problems in oil trade in Asia due to the shortcomings of paying for it in a currency other than the US dollar, and no solution to these problems is in sight.

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