So far, the Russian oil price cap has

The Group of Seven oil price cap scheme aimed at limiting Russia’s oil export revenue is working “very well so far,” according to Amos Hochstein, special presidential coordinator for President Joe Biden.

“As oil prices have gone down, there’s no question that the price cap, so far, and there’s a long way to go, as we sit today, achieved our interest, which was to have a continuous supply of oil in the market to support economic growth while limiting the value that oil creates for Putin,” he told CNBC’s Hadley Gamble in Abu Dhabi on Friday.

The price cap initiative was introduced on December 5, when the EU stopped taking Russian crude. The pricing scheme requires non-G7 buyers using Western services such as shipping lanes, insurance and financing to pay no more than $60 per barrel for Russian crude transported by sea.

EU countries will no longer be able to access Russian oil products transported by sea from February 2. 5.

President Vladimir Putin last month Announced Russia would halt supplies of crude oil and petroleum products for five months to any nation that adhered to the cap, effective February 2. 1. The retaliatory measure will be followed by a separate ban on refined petroleum products.

Hochstein said that while the scheme was still in its infancy, “the fact that the discount on Russian oil has widened is a good thing, we expect it to continue. We’ll see where it takes us.”

He did not specify how much the US believes the price cap initiative is costing Russia. The Finnish Research Center for Clean Air and Energy estimates this figure to be €160 million ($172 million) per day.

The plan faced important skepticism by some analysts, while it was outlined by the G-7 and its ally Australia.

Former US Treasury Secretary Steve Mnuchin said the initiative was “Not only is it not feasible, I think it’s the most ridiculous idea I’ve ever heard.”

“I’m glad that where everyone doubted that the price cap would work, I think sometimes people tend to think that if it hasn’t been done before, it’s not possible. I think the G7 came together, it’s part of the G7 unit , and I think so far so good,” Hochstein said.

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