The West’s proposed price cap on Russian oil is no magic weapon

after the invasion of Ukraine, oil money continues to fill Vladimir Putin’s war chest. Even as the West has imposed sanctions, Russia’s crude exports have held up and the Urals oil price remains close to its average in 2014-20. Russia’s current-account surplus this year is expected to be $265bn, second only to China’s. But the story is not over yet. On December 5th the European Union will at last implement a plan originally cooked up in May. It will ban seaborne imports of Russian oil. It will also prohibit European firms from insuring, shipping or trading Russian crude anywhere in the world—unless the oil is sold at a price below a cap set by the West.