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Sanctions on Russian crude oil have ‘failed completely,’ oil analyst says


The European Union’s ban on Russian oil product exports is slated to kick in on Feb. 5.Picture Alliance | Picture Alliance | Getty ImagesSanctions imposed on Russian crude oil have so far have “failed completely” and new price caps could prove immaterial as well, analysts told CNBC.The European Union is planning to ban imports of refined petroleum products from Russia, including diesel and jet fuel, from Sunday. The 27-member bloc has already banned the purchase and import of sea-borne Russian crude oil since December.In addition, the bloc — along with its allies in the Group of 7 and Australia — has set a price cap on Russian seaborne crude oil, which bars the use of Western-supplied maritime insurance, finance and other services unless they are sold below $60 per barrel.They are part of global efforts to curb Moscow’s ability to raise funds for its war in Ukraine.The price cap “was invented by bureaucrats with finance degrees. None of them really understand oil markets,” Paul Sankey, president and lead analyst at San …

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