Tough sanctions were put in place in order to dent Moscow's war chest. Russia earned record revenues from fossil fuels in the first 100 days of its war on Ukraine, driven by a windfall from oil sales, according to an analysis.
According to data analyzed by the Center for Research on Energy and Clean Air, Russia earned a record 93 billion euro in revenue from its oil, gas and coal exports in the first 100 days of the invasion of Ukraine. Most of the rest of the earnings were from natural gas and oil.
The current rate of revenue is unprecedented because prices and export volumes are close to their highest levels on record.
Russia's military build up has been aided by fossil fuel exports. According to the International Energy Agency, oil and gas accounted for 45% of Russia's federal budget in 2011. The revenue from Russia's fossil fuel exports exceeds what the country is spending on its war in Ukraine, according to a research center.
Ukrainian officials once again called for firms and countries to stop trading with Russia. "We are asking the world to do everything possible in order to cut off Putin and his war machine from all possible financing, but it's taking too long."
The research center's numbers seemed to be on the conservative side. The underlying finding was the same, he said. You can stop imports of Russian food, but not enough. He told them to stop buying Russian oil.
The decline in Russia's fossil fuel exports has been counteracted by surging prices, as more countries and companies shun trading with Moscow. Russia's export prices for fossil fuels have been on average 60 percent higher than last year, even though Russian oil is fetching 30 percent less than international market prices.
Even as many countries send military aid to Ukraine, Europe is struggling to wean itself from Russian energy. In the first 100 days of the invasion, the EU reduced its imports of natural gas from Russia by 23 percent. The Center for Research on Energy and Clean Air found that income at Russia's state-owned gas giant, Gazprom, was twice as high as the year before.
The EU reduced its imports of Russian crude oil in May. There was no net change in Russia's oil export volumes as a result of the dip made up by India and the U.A. India has become a major importer of Russian crude oil, buying 18 percent of the country's exports over the course of 100 days.
The US banned all Russian fossil fuel imports. The United States imports refined oil products from countries like the Netherlands and India that are more likely to contain Russian crude.
China was the biggest importer of Russian fossil fuels over the 100 day period. China imported the most oil, followed by Japan.
Bans are going to be harsher. Roughly three-quarters of Russian oil shipped to the region will be covered by an embargo that won't be in effect for six months. By the end of the year, Britain will no longer import Russian oil. Hungary, the Czech Republic and Slovakia are not included. The European and US-owned ships are still transporting Russian oil.
Europe is moving away from fossil fuels at a faster pace. The E.U. wants to increase the region's share of electricity from renewable forms of energy to 63 percent by the year 2030.
The Treasury secretary said last week that the US was in talks with its European allies about setting a cap on the price of Russian oil. She told the Senate Finance Committee that it would trim Russia's fossil fuel revenues and keep Russian oil flowing to global markets.
Mr. Ustenko said he would welcome a temporary measure until full embargoes can be imposed. He said that countries should pay the difference between global prices and the capped price on Russian oil into a fund for Ukrainian reconstruction.
He said that they would be able to cut off Russians from a lot of their financing.
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