Are sanctions working if Russia is still profiting?

Hello and you're listening to the Marketplace Morning Report live from the BBC World Service.

I'm Leanna Byrne.

Thanks so much for tuning in.

But first, her top story, Moody's, the ratings agency, has

downgraded China's government credit rating from stable to negative. It's worried

about China not growing as much and its real estate market, China's finance ministry says, it's disappointed

about the decision. More on that story in our later programs with David Brancaccio.

A year ago, today the EU and G7 introduced sanctions to restrict Russian oil revenue to try to stop it from

fueling the war in Ukraine. But as the BBC's Freel Lindsay has been finding out, oil money

continues to flow into Russia. Together with our partners, we stand united in our opposition to Russia's atrocious war.

Late last year, European Commission President Ursula von der Leyen announced an import ban on Russian oil to the EU and

G7 that was supposed to limit the revenue Russia could use to finance its war in Ukraine.

Fearing the impact to global markets of a full global ban, they imposed a price cap of $60 per barrel on oil shipped

elsewhere in the world. This would be enforced by shipping service providers like insurers.

$60 per barrel is still very comfortable comfortable but it is preventing Russia from

creeping extraordinary windfalls of Russia were to sell at 60 versus 70 it is the

difference of about 17 billion that's a Lena Ryicova, senior non-resident fellow with the Peterson Institute for International

Economics. She, along with other Russia oil watches, have been warning for some time that Russia is

getting around that price cap by for instance

using a shadow fleet of tankers run by operators outside the Western system.

It's using ships which are insured by either Russia or Indian or Chinese companies.

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