iAsk.ca

How the West is helping Russia to fund its war on Ukraine

(7 months ago)
Vitaly Shevchenko
War in UkraineRussiaVladimir PutinUkraineRussia sanctions

AI Summary

TL;DR: Key points with love ❤️

Western countries, despite sanctions, continue to pay Russia billions for fossil fuel exports, significantly funding its war in Ukraine. Data shows Russia has earned over €883bn since February 2022, with €228bn from sanctioning countries, largely due to continued pipeline gas imports, LNG exports to the EU, and the "refining loophole" where Russian crude is processed in third countries (e.g., Turkey, India) and sold to the West. Campaigners urge stronger sanctions and enforcement.

Trending
  1. 1 February 2022: Start of full-scale invasion of Ukraine
  2. 2 Since February 2022: Russia made over €883bn from fossil fuel exports
  3. 3 2024: Russian revenues from fossil fuels fell 5% from 2023, crude oil exports increased 6%, pipeline gas increased 9%, LNG exports reached record levels
  4. 4 January 2025: Ukraine cut transit of pipeline gas from Russia
  5. 5 January and February 2025: Russian gas via Turkey rose 26.77%
  6. 6 January 2025: Joe Biden's administration introduced new sanctions targeting Russia's 'shadow fleet'
  7. 7 By May 29, 2025: Russia made €228bn from sanctioning countries
  8. 8 End of 2027: EU road map towards ending all Russian gas imports
  • Continued funding of Russia's war machine in Ukraine
  • Economic benefit for Russia despite sanctions
  • Undermining of Western sanctions efforts
  • Dependence on fossil fuels impacting geopolitical stability
  • Potential for higher energy prices if sanctions are tightened
What: Western countries are inadvertently funding Russia's war in Ukraine by continuing to purchase Russian fossil fuels (oil and gas), despite sanctions. This includes direct pipeline gas imports (to Hungary, Slovakia, via Turkey), liquefied natural gas (LNG) exports to the EU, and the "refining loophole" where Russian crude is processed in third countries (Turkey, India) and then sold to sanctioning countries. Russia has earned vast sums, far exceeding aid to Ukraine.
When: Since February 2022 (start of full-scale invasion). By May 29 (Russia made over €883bn). January 2025 (Ukraine cut transit of pipeline gas). January and February 2025 (Russian gas via Turkey rose 26.77%). 2024 (Russian revenues fell 5% from 2023, crude oil exports increased 6%, pipeline gas increased 9%, LNG exports reached record levels). End of 2027 (EU road map to end Russian gas imports). January 2025 (Joe Biden's administration introduced new sanctions).
Where: Russia (exporter). Ukraine (recipient of invasion, aid). Western allies (buyers, sanctioning countries). Europe, North America (campaigners' focus). EU member states (major buyers). Turkey, India ("laundromat refineries"). G7 group of nations (oil price cap).
Why: Fossil fuel exports are key to Russia's state revenue (almost a third) and exports (over 60%). Western countries continue purchases due to fear of higher energy prices and lack of political will for stronger sanctions, and loopholes in existing sanctions.
How: Russia sells oil and gas. Western countries buy them. Sanctions were imposed but have loopholes (e.g., refining in third countries, continued pipeline gas/LNG imports). Campaigners advocate for better enforcement of sanctions (oil price cap, targeting shadow fleet) and closing loopholes (banning LNG exports, refining loophole).

Western countries, despite sanctions, continue to pay Russia billions for fossil fuel exports, significantly funding its war in Ukraine. Data shows Russia has earned over €883bn since February 2022, with €228bn from sanctioning countries, largely due to continued pipeline gas imports, LNG exports to the EU, and the "refining loophole" where Russian crude is processed in third countries (e.g., Turkey, India) and sold to the West. Campaigners urge stronger sanctions and enforcement.