The US State Department: Russian oil price cap is working effectively.

State Department representative Eric van Nostrand said that the $60 per barrel price limit for purchasing Russian oil introduced by the G7 countries and their allies continues to work despite quotations above this level.

He added that this policy has reduced Russia’s revenues, and that the US and allied law enforcement agencies will deal with any violations of the price ceiling. Van Nostrand also said that the US is evaluating the effectiveness of this policy by whether it allows buyers around the world to negotiate greater discounts on Russian supplies.

“We don’t measure the success of price caps just by how many molecules of oil travel in specific barrels. We see it as a market mechanism to change the incentives of the oil market,” van Nostrand said.

It should be noted that since mid-July the Russian benchmark reference oil brand, Urals, has been quoted above $60 per barrel.