For the first time, on September 29 US Treasury Secretary Janet Yellen acknowledged the mixed results of Russian oil sanctions. By the end of 2022, the G7 countries, the European Union (EU) and Australia had prohibited their companies from insuring or providing any services to a company transporting Russian oil if it was sold above $60 per barrel. In the maritime industry where Western companies are indispensable, the measure was intended to cut off Russia’s revenues while allowing its production to supply the global market to prevent a surge in prices. However, Yellen admitted that "Russia has spent a lot of money, time and effort to service its oil exports," before euphemistically concluding that the "effectiveness of the price capping has been reduced."

In reality, the price capping imposed by Western countries is no longer being adhered to, as evidenced by the recent increase in the price of Urals, the benchmark variety of Russian black gold, which reached $90 per barrel. Moscow has circumvented the sanctions by first finding new markets in Asia, primarily in China and India, which do not impose any embargo on Russia. Russia has exported its oil to them while pretending to adhere to the price ceiling. To compensate for the loss of income, Russia has overcharged its Chinese or Indian customers for other services through front companies registered abroad. It has also managed to sell its oil at market prices by bypassing Western service providers and engaging in trading and insurance on its own or by operating covertly.

As revealed in a recent investigation by Le Monde, Russia has acquired old oil tankers that sail the seas without insurance or carry out transshipment operations to conceal the origin of the transported oil. In May, India purchased 40.4% of its imported oil from Russia, compared to only 2% before the start of the war in Ukraine. In other words, India has become the primary Russian oil "launderer," as it re-exports it to Europe in the form of diesel or gasoline after legally refining it on its soil. "Russia has never made so much money," said an anonymous French trader, "but it is partly invisible because it ends up in offshore company accounts."

The sanctions have had unexpected consequences. Who would have imagined two years ago that they would pose a threat to the environment? However, that’s what the Financial Times revealed in its September 15 edition, showing that Russian tankers were taking the Arctic route to reach Asia, a shorter route than going through the Suez Canal but also much riskier. The tankers used do not have reinforced hulls, making them vulnerable to collisions with icebergs and the potential for an environmental disaster. According to calculations by the British newspaper, three-quarters of Russian oil exports in August were transported without coverage from a Western insurance company, compared to only 50% in the spring.

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