In the first 100 days of the war against Ukraine, Russia made £79.4 billion (over Rs 7 trillion) by exporting fossil fuels to countries all over the world. Despite a considerable drop in export quantities in May as the international community sought to minimise reliance on Moscow’s oil and gas, Russia achieved the remarkable figure. The EU got 61% of Russia’s fossil fuel exports, according to a report by the Centre for Research on Energy and Clean Air (CREA).
Even though Russian oil is sold at a discount due to its origins, President Vladimir Putin’s administration has profited from a global increase in demand for fossil fuels and increasing energy prices. The EU has promised to halt most Russian oil imports by the end of the year, despite its inability to get an agreement on how and when to wean itself off Russian gas.
Nonetheless, Poland and the United States, as well as Lithuania, Finland, and Estonia, had the greatest impact on Russia’s income by drastically lowering imports. India, France, China, the United Arab Emirates, and Saudi Arabia all increased purchases, according to CREA data, with India purchasing 18% of Russia’s crude oil exports and France being the top buyer of discounted liquid natural gas and oil cargoes on the short-term market.
Russian President Vladimir Putin believes that the West will be unable to isolate itself from Russian oil and gas for several years. He claimed that no one knows what will happen at that time, so Russian companies will not be “concreting over their oil-wells.” The EU has vowed to reduce its reliance on Russian oil by 90% by the end of 2022 but has made no obligations on gas.
Russian energy restrictions are intended to penalise Moscow for invading Ukraine. However, rising global oil and gas prices suggest that Russian earnings may have increased in recent months, despite a decrease in overall output.