Part 2/7:
Since the onset of the Ukraine war, the world has witnessed a cautious approach from both the USA and Europe regarding Russian oil supply. The primary concern has revolved around maintaining global oil supply balance to avoid exacerbating economic conditions worldwide. An immediate ban on Russian oil could have prompted prices to soar, risking a global recession. Hence, the West opted for a price cap approach to mitigate this impact while still attempting to curb Russian revenues.
However, the implementation of this price cap has not come without challenges. Russian oil companies have managed to exploit loopholes by inflating shipping costs and manipulating documentation to circumvent restrictions in place, effectively undermining the sanctions' intended impact.