Russia loses €160 million daily due to oil sanctions

Due to the ban on the import of Russian oil and the price ceiling for it, the budget of the Russian Federation does not receive 160 million euros per day, but further measures can significantly increase the consequences, writes dw.com.

Illustrative photo

The European ban on the import of Russian oil and the price ceiling introduced by Western countries cost Russia 160 million euros per day, according to analysts of the Helsinki Center for Energy and Clean Air Research (CREA). This is stated in the report published on Wednesday, January 11.

The drop in shipment volumes and prices for Russian oil reduced Russia's export revenue by 180 million euros per day. At the same time, Russia managed to replenish 20 million euros per day due to increased exports to other countries, writes CREA. From February 5, when restrictions will be extended to oil products, Russia will lose 280 million euros per day, analysts predict.

"The EU oil ban and oil price cap are finally in place, and their impact has been as significant as expected," said CREA lead analyst Laura Müllywirth.

The EU remains the largest exporter of oil from Russia

In December, Russia's revenues from the export of fossil fuels fell by 17 percent — to the lowest level since the beginning of the invasion of Ukraine, writes CREA. At the same time, Russia still earned about 640 million euros per day from the export of fossil fuels, in the spring of last year this figure was 1 billion euros.

In December, the European Union remained the largest importer of oil and petroleum products from Russia, but the situation will change, since at the end of December Germany stopped importing Russian pipeline oil, and in February the EU ban on petroleum products will come into force, analysts note.

Japan has become the largest importer of LNG from Russia, as European buyers have reduced purchases. China, South Korea, Turkey, India and Japan were the largest importers of Russian coal.
Additional measures can reduce the income of the Russian Federation by another 300 million euros

The embargo on sea deliveries of Russian oil to the countries of the European Union has been in effect since December 5. An exception was made for Bulgaria, the sanctions also do not apply to deliveries via the Druzhba pipeline. At the same time, the price ceiling for sea deliveries of oil from the Russian Federation ($60 per barrel), which was introduced by the EU countries, the G7 (GXNUMX) and Australia, began to take effect.

According to CREA's calculations, if the price ceiling continues to decrease from 60 to 25-35 dollars per barrel, it will reduce Russia's oil export revenues by at least another 100 million euros. Other possible measures, such as tougher fines for non-compliance and additional sanctions, could reduce Russia's income by another 200 million euros per day, according to CREA.

Read also on Newsky "A Russian woman involved in propaganda was expelled from the jury of the children's award" and look at Boring Pence YouTube channel.

To always be up to date, subscribe to TG channel Newsky. We also recommend the current discussion of friends of Ukraine in North America on Rashkin Report YouTube channel.