Fueling the War: How Western Money Keeps Russia’s Oil Profits Flowing

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Fueling the War: How Western Money Keeps Russia’s Oil Profits Flowing

 

Despite sweeping sanctions and political condemnation, Western nations have continued to funnel billions of euros into Russia's war chest through the ongoing purchase of fossil fuels. More than three years into the full-scale invasion of Ukraine, data reveals that Russia’s earnings from oil and gas exports have significantly outstripped the financial aid provided to Ukraine by its allies.

 

 

Since the war began in February 2022, Russia has earned over €883 billion from fossil fuel exports. Of this staggering total, €228 billion came from countries that have officially imposed sanctions on Moscow. The European Union alone accounts for €209 billion of that sum, underscoring the continent’s continued reliance on Russian hydrocarbons. This revenue, according to the Centre for Research on Energy and Clean Air (CREA), has become a financial lifeline for sustaining the Kremlin's military aggression.

 

 

Oil and gas are critical to the Russian economy, making up nearly a third of state revenues and more than 60% of exports. While the United States and United Kingdom banned Russian oil and gas following the invasion, the EU’s restrictions were partial—banning seaborne crude imports but allowing gas imports to continue. These measures have proven insufficient. Russia’s fossil fuel export revenues fell by just 5% in 2024 compared to the previous year, with crude oil revenues actually increasing by 6% and pipeline gas earnings climbing by 9%. Gas exports to Europe, bolstered by Turkish routes, rose by up to 20%, and half of Russia’s liquefied natural gas (LNG) exports still go to EU countries.

 

EU foreign policy chief Kaja Kallas acknowledged the incomplete nature of the sanctions, stating that some member nations feared potential conflict escalation and were motivated by short-term economic savings. "The strongest sanctions" have not been enacted, she admitted.

 

Meanwhile, campaigners argue that energy dependence has obstructed efforts to effectively cut off Russian war funding. Mai Rosner of Global Witness highlighted the reluctance among Western leaders to further restrict Russian fossil fuels. “There’s no real desire in many governments to actually limit Russia’s ability to produce and sell oil,” she told the BBC. “There is way too much fear about what that would mean for global energy markets.”

 

Compounding the issue is what’s been dubbed the “refining loophole.” This refers to Russian crude oil being exported to third-party nations like Turkey and India, refined into fuel products, and then sold to countries that have sanctioned direct imports from Russia. CREA identified six such “laundromat refineries” using €6.1 billion worth of Russian crude to create fuels for Western markets. India’s petroleum ministry rebuked CREA’s findings as an attempt to "tarnish India's image," but CREA analyst Vaibhav Raghunandan countered, “This is a loophole. It’s entirely legal. Everyone’s aware of it, but nobody is doing much to actually tackle it in a big way.”

 

Former Russian deputy energy minister Vladimir Milov, now a vocal critic of Vladimir Putin, believes enforcement—not new laws—is the issue. He called the G7’s oil price cap “not working” and warned that institutional changes in the US under President Donald Trump could weaken key enforcement bodies like the Treasury and OFAC. However, Milov did note improvements in sanctioning Russia’s “shadow fleet” of tankers used to circumvent restrictions. “That is a complex surgery operation,” he said. “You need to periodically release batches of new sanctioned vessels, shell companies, traders, insurers etc. every several weeks.”

 

Rosner maintains that banning Russian LNG and closing the refining loophole would be “important steps in finishing the decoupling of the West from Russian hydrocarbons.” Raghunandan agrees, adding that the EU could afford to make the cut. “Fifty percent of their LNG exports are directed towards the European Union, and only 5% of the EU’s total [LNG] gas consumption in 2024 was from Russia. So if the EU decides to completely cut off Russian gas, it’s going to hurt Russia way more than it’s going to hurt consumers in the European Union,” he said.

 

In a stark paradox, the West’s energy appetite continues to underwrite the very war it seeks to end. Until that contradiction is addressed, Russia's war machine will remain well-fueled—both literally and financially.

 

  Adapted by ASEAN Now from BBC  2025-05-31

 

 

[blaze master]

Oh the hypocrisy. 

[Tug]

Eliminate putin get yourselves together Russia get the hell out of Ukraine rejoin the world and thrive!

[thaipo7]

4 hours ago, Tug said:

Eliminate putin get yourselves together Russia get the hell out of Ukraine rejoin the world and thrive!

OMG - You didn't blame Trump for any of this.

[Tug]

6 minutes ago, thaipo7 said:

OMG - You didn't blame Trump for any of this.

Trump didn’t invade Ukraine but he sure is one of putins greatest assets no doubt about that…..remember the other day saying he was going to sanction Russia 500% then did the TACO in less than 12 hours?I sure do.Ell regardless I’d love to see putin go away Russia get out of Ukraine and rejoin the world.

[frank83628]

1 minute ago, Tug said:

Trump didn’t invade Ukraine but he sure is one of putins greatest assets no doubt about that…..remember the other day saying he was going to sanction Russia 500% then did the TACO in less than 12 hours?I sure do.Ell regardless I’d love to see putin go away Russia get out of Ukraine and rejoin the world.

Because he got the info about Putins helicopter coming under drone attack. Sobit was retaliation. 

Do you think the US or UK, or any country  would just sit back if their leaders had an assassination attempt? 🤡

[CallumWK]

5 hours ago, blaze master said:

Oh the hypocrisy. 

 

https://www.newsweek.com/russia-oil-us-sanctions-imports-ukraine-war-2038626

 

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