Is The Russian Oil Price Cap Worth It?

The Russo-European gas war entered a new phase recently when Russia’s Gazprom announced that they will halt the flow from Nord Stream 1 indefinitely (I have written in detail about this development here). This happened immediately after the G7 countries agreed to impose a price cap on the country’s oil in order to reduce Russia’s burgeoning revenues from energy sales - there has been a 38 percent uptick in Russian earnings from energy exports since last year. Meanwhile, European countries are grappling with extraordinarily high…