Russia has managed to avoid G7 sanctions on most of its oil exports, allowing it to boost revenues as crude oil prices rise towards $100 a barrel, according to a Financial Times analysis. Nearly three-quarters of all seaborne Russian crude oil flows travelled without western insurance in August, a method used to enforce the G7’s $60 per barrel oil price cap. This indicates that Russia is becoming more skilled at circumventing the cap and selling its oil closer to international market rates. However, an economist at the Kyiv School of Economics suggests that it may be difficult to enforce the cap in the future due to these shifts in how Russia ships its oil. This analysis comes as the Kremlin plans to increase state spending by over 25% next year, focusing on defence in its draft budget of RUB36.6tn ($383bn).
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