Russia's oil revenues have suffered a marked decline since Western countries slapped a price cap on Russian crude as punishment for the invasion of Ukraine, the US Treasury said Thursday, reported from Barron's.

"Despite widespread initial market skepticism around the price cap, market participants and geopolitical analysts have now acknowledged that the price cap is accomplishing both of its goals," according to the Treasury report.

The $60-a-barrel cap levied by the G7 group of advanced economies, the European Union and Australia caused oil revenues to shrink from as much as 35 percent of the total Russian budget before the war to 23 percent this year, the Treasury said.

The Treasury, citing Russian Ministry of Finance figures, said federal government oil revenues were down over 40 percent between January and March this year compared to a year earlier.

The decline in revenues comes despite an increase in overall Russian oil exports to countries including India over the last year.

The report will provide welcome news for G7 now leaders holding a summit in Japan. They are expected to weigh fresh Russian sanctions over the war in Ukraine, and how to better enforce existing sanctions.





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