Russia’s revenues from fossil fuel exports outweigh its expenses for the war in Ukraine. While the war costs in the first half amounted to around one hundred billion euros, the revenues were the equivalent of 158 billion euros. The analysis tracked oil, gas and coal exports between February 24 and August 24.
For the study, the Center for Research on Energy and Clean Air (CREA) evaluated data from shipping and pipeline transport. It showed not only that Russia’s revenues from energy exports exceeded the costs of the war, but also that, despite the sanctions, the EU was the largest buyer of the stocks (85 billion euros), with Germany leading the way. China came in second (35 billion euros).
New markets
Although export volumes have fallen, Russia is “still making record revenues” from fossil fuels, said CREA analyst Lauri Myllyvirta. Exploring new markets, especially in Asia (for example, India and Iran), could also contribute to this. After the finance ministers of the United States, Germany, Italy, Japan, Britain, France and Canada gave the green light to a price cap on Russian crude oil last week, Moscow announced it would ship even more oil to Asia.
“Any measure to impose a price cap will create a deficit in domestic markets and increase price volatility,” said Russian Energy Minister Nikolai Shulginov.
Price caps and rates
Regardless of this statement, the CREA recommended that the West accelerate tariffs on imports from Russia and energy measures in addition to price caps. The point is to reduce oil and gas consumption and instead increase the use of clean energy, heat pumps and electric vehicles.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
