plowunited.net – Russia has kept making billions by exporting oil and gas to Western countries, helping fund its war in Ukraine. Since the invasion started in February 2022, Russia has earned over three times more from fossil fuel exports than the aid Ukraine has received from its allies. Data shows that Western countries have paid Russia more for oil and gas than they have given Ukraine in support. Despite sanctions and bans, Russian fossil fuels remain a significant source of income for the Kremlin, prolonging the conflict.
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Western Sanctions on Russian Energy Have Limited Impact So Far
Western countries, including the US, UK, and EU, imposed sanctions on Russian oil and gas soon after the invasion. The US and UK banned all imports, while the EU limited seaborne crude oil but allowed pipeline gas to continue. However, Russia still earned more than €883 billion from fossil fuel exports by May 2025. Much of this revenue comes from EU states, which kept importing Russian gas until Ukraine halted transit in January 2025. Even now, Russian gas flows to Europe through Turkey, Hungary, and Slovakia, keeping Russia’s income stable.
Russia’s Fossil Fuel Revenues Remain High Despite Export Reductions
In 2024, Russia’s fossil fuel earnings fell by only 5% compared to 2023, while export volumes dropped 6%. Crude oil export revenue actually increased by 6%, and pipeline gas revenue rose by 9%. Russian gas exports to Europe reportedly grew by 20% last year, with liquefied natural gas (LNG) exports hitting record levels. Half of Russia’s LNG exports currently go to the EU. This ongoing trade contradicts efforts to weaken Russia financially and shows the EU’s reluctance to impose stronger sanctions for fear of energy price spikes.
Refining Loopholes Allow Russian Oil to Enter Western Markets
Apart from direct sales, some Russian oil enters the West after being refined in third countries, known as the “refining loophole.” Countries like Turkey and India process Russian crude and sell fuel products back to sanctioning countries. CREA estimates this loophole has allowed over €6 billion of Russian crude to reach Western markets. Although legal, experts argue that governments ignore this practice, weakening sanctions’ effectiveness. Critics call for stronger enforcement to close these loopholes and cut Russia’s energy income.
Experts Urge Stronger Enforcement and Further Sanctions to Cut Funding
Experts and campaigners say Western governments can do more to stop Russia’s fossil fuel profits. Former Russian energy official Vladimir Milov urges better enforcement of oil price caps and sanctions, warning political changes in the US could hamper efforts. Targeting Russia’s “shadow fleet” of tankers evading sanctions is crucial. Campaigners also recommend banning Russian LNG imports to Europe and closing refining loopholes. Such measures could significantly reduce Russia’s war funding and help end Europe’s dependence on Russian hydrocarbons.
