The value of Russia’s main crude oil export has come under renewed pressure as EU sanctions and the G7 price cap draw closer, while signs are mounting that the restrictions are little threat to Moscow’s robust production and oil revenues.

The overall price of Russia’s flagship crude, the Urals, slumped to a 22-month low ahead of the mechanism’s launch on December 5, as weak physical market fundamentals and fears of sanctions risks have pushed discounts even steeper.