A recent report by a group of Western insurers has shed light on Russia's ability to circumvent Western oil sanctions, revealing that measures aimed at capping Russian oil prices have proven ineffective and have inadvertently fueled a surge in gray zone activities.

Introduced by the seven most developed industrial countries, including the EU, the cap on Russian oil prices was designed to curtail Kremlin revenue without disrupting global oil trade or causing energy price spikes. However, the cap, which stipulates that deals must be made at prices below 60 USD a barrel for Western shippers and insurers to participate in Russian oil trading, has faced significant challenges.

According to the international group of P&I Clubs, comprised of 12 marine insurers covering a substantial portion of the world's ocean tonnage, the price cap has been rendered increasingly unenforceable since its inception two years ago. Russia has responded by bolstering its own fleet, acquiring tankers and vessels from non-sanctioned countries to bypass restrictions.

Presented as written evidence during a UK Parliament hearing, the group's statement highlights that approximately 800 tankers have already changed ownership to evade compliance with the oil price cap. This escalation in parallel trade activities underscores the limitations of Western sanctions and the resilience of Russia's oil industry in adapting to restrictive measures.

The revelation underscores the ongoing cat-and-mouse game between Western sanctions and Russian efforts to circumvent them, signaling the need for continued vigilance and adaptive strategies in international efforts to curtail Kremlin revenue streams.