Financing the war: The EU has already paid Russia more than 200 billion euros for fuel
15 November 14:36
Since Russia’s full-scale invasion of Ukraine on February 24, 2022, Moscow’s revenues from fossil fuel exports have reached almost 785 billion euros. At the same time, the European Union, despite the sanctions, remains the largest importer after China, spending more than 205 billion euros on Russian energy resources. This is evidenced by the data of the Center for Research on Energy and Clean Air (CREA), according to Komersant ukrainskyi
According to CREA’s analysis, oil accounts for the largest share of Russia’s export revenues, accounting for 69% of total revenues, or more than 541 billion euros. Gas accounted for 20% of revenues, and coal for 11%.
It is worth noting that, compared to the pre-war period, EU imports have fallen sharply. The cost of supplies to Europe has more than halved.
Nevertheless, the EU remains a key market for Russia and, accordingly, a key payer. During the full-scale war, only China has transferred more to Russia.
However, experts point out that although European sanctions are reducing dependence on Russian fuel, Moscow is reorienting supplies to Asian markets, which helps to compensate for losses. However, the general trend shows a gradual decline in Russia’s revenues, especially in the EU markets, where there is a steady decline in consumption.
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Europe and gas
As of the beginning of 2022, the EU was 40% dependent on Russian gas. In 2021, 65% of the gas purchased by Germany was Russian. In the third quarter of 2023, only 12% of the gas imported by the EU was Russian.
The current contract for gas supplies to Europe through the Ukrainian gas transportation system expires in December 2024. Both sides have made it clear that they are not going to extend it.
At the same time, some EU countries remain dependent on Russian gas, such as Hungary, Slovakia, and Austria. These countries’ contracts with Gazprom provide for gas supplies through the Ukrainian gas transportation system. For example, Austria signed a contract for gas supplies until 2040.
After both Nord Stream and the Ukrainian GTS are out of commission, Russia will be able to supply gas to Europe only through the Turkish Stream.
