**Russia’s Billions: How Fossil Fuel Exports Are Funding Ukraine Invasion**
Despite Western sanctions, Russia has continued to make billions from fossil fuel exports to the West. Since the start of its full-scale invasion of Ukraine in February 2022, Russia has made more than three times as much money by exporting hydrocarbons than Ukraine has received in aid allocated by its allies.
**The Numbers Don’t Lie**
According to data analyzed by the BBC, Russia has earned over €883 billion ($973 billion; £740 billion) from fossil fuel exports since the start of the invasion. The lion’s share of this amount came from EU member states, with €209 billion generated through direct sales and another €228 billion made from exports to sanctioning countries.
**A Refining Loophole**
In addition to direct sales, some Russian oil ends up in the West after being processed into fuel products in third countries via a “refining loophole”. This loophole allows Russian crude to be sold on to sanctioning countries, with CREA identifying three refineries in Turkey and India that have used €6.1 billion worth of Russian crude.
**Experts Call for Action**
Campaigners say Western governments have the tools to stem the flow of oil and gas revenue into the Kremlin’s coffers. They argue that better enforcement of sanctions, particularly the oil price cap adopted by the G7 group of nations, is crucial. Another avenue is continued pressure on Russia’s “shadow fleet” of tankers involved in dodging sanctions.
**Closing the Loophole**
Experts say banning Russian LNG exports to Europe and closing the refining loophole in Western jurisdictions would be important steps in finishing the decoupling of the West from Russian hydrocarbons. The EU could relatively easily give up Russian LNG imports, which account for only 5% of its total gas consumption.
**The Moral and Practical Issues**
Campaigners highlight both moral and practical issues with the West buying Russian hydrocarbons while supporting Ukraine. They argue that this dependence on fossil fuels means that the West is at the whims of energy markets, global energy producers, and hostile dictators.
**No Easy Solution**
Experts have dismissed Donald Trump’s idea that the war with Ukraine will end if Opec brings oil prices down. They say this would hurt the American shale oil industry more than Russia, and that Saudi Arabia would not agree to such a plan.
As the situation continues to unfold, experts emphasize that there is no easy solution to the problem of Russian fossil fuel exports funding the invasion of Ukraine. However, they stress that Western governments have the means available to stem the flow of revenue into the Kremlin’s coffers and end this decoupling once and for all.
