Ending Russia’s dependence on fossil fuels after the country’s invasion of Ukraine was less complicated to say than to do for many countries. While in Europe the preference for withdrawing the budget from Russia’s war effort was perhaps stronger, the chains of sources established with the eastern neighbor also proved to be one of the most difficult to break.
Data from the Center for Research on Energy and Clean Air show that, despite its stated intentions, the European Union’s cuts in Russian fossil fuel imports slightly exceed the global average through a 15% relief in financial terms. For this indicator, the increase in fossil fuel costs in the global market go against discounts on the volume of imports, revealing another difficulty in trying to isolate Russia from one of its main revenue resources.
Notable exceptions within the EU are Sweden, which has halted virtually all Russian fossil fuel imports, Spain and Finland, Lithuania, Poland and Estonia, all of which have at least halved their dependence on Russian mineral fuels. Germany, the Netherlands and Italy remain below the world average.
Because of the other length of countries involved (and because of their other degrees of dependence in the past), those relative discounts do not all carry the same weight when considered in absolute terms. According to the report, the United States achieved the most absolute relief for a single country. The phase-out of Russian fossil fuels has absolutely reduced Russia’s daily source of income by around $33 million between February-March and May 2022. However, the European Union’s combined 16% relief, smaller in relative terms, reduced revenue through $114 million. income during the same period.
India buys surplus
India is a country that is instead injecting more into Russian coffers by seizing discounted Russian oil deliveries. Between February-March and May, the country spent about $65 million more per day on Russian energy.
In total, Russia has lost fossil fuel revenue from the $100 million-a-day song since the invasion due to the boycott of its products. Russia gives discounts on shipments, but global market costs have been very high since mid-2021 and have increased. more since the beginning of the Russian war in Ukraine means that the country still earns a higher premium on its fossil fuel exports. Comparing 2022 revenues to May 2021, Russia earns about 40% more on its energy exports despite recent losses, rendering Russia’s energy freeze efforts futile.
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