This is how the European Union finances Russia’s war with Ukraine. The largest funds come from Italy and Germany

The current account deficit of the 27 European Union countries with Russia in the third quarter of 2022 amounted to EUR 24.4 billion, according to Eurostat data. For comparison, in the second quarter this amount was EUR 33.3 billion, and in the first quarter it was EUR 35.3 billion, according to .

Where does Russia get money for the war in Ukraine?

Previously, the first quarter of 2014, when it annexed Crimea, was record-breaking in this respect. The current account deficit then amounted to EUR 17.4 billion. “The current amounts are therefore half of the records before the open aggression against Ukraine in February 2022,” we read.

In the case of Poland, in the third quarter of 2022, Russia’s surplus was only EUR 1.6 billion. For comparison, in the second quarter it was EUR 2.9 billion, and in the first quarter the amount was EUR 4.7 billion, which was a historical record.

And who provided the largest funds for Russia? The “leaders” include countries that use Russian gas and oil in abundance. The first is Italy – its negative trade balance with Russia from January to September 2022 amounted to as much as EUR 16.7 billion and was the worst in the European Union, according to Business Insider. “In total, as much as 37.7 billion euros flowed from Italy to Russia over the five years,” we read. The second in line is Germany with the amount of EUR 17.2 billion in the red.

Sanctions on Russia. The European Union has imposed a price cap on oil

The European Union has imposed broad sanctions on Russia in order to turn off the tap that Putin spends on, among others, on . In early December, the EU and G7 countries agreed on a limit on the price of Russian oil transported by sea at USD 60 per barrel. After the introduction of the limit, European insurance companies operating in the shipping industry will not be able to offer insurance for the transport of tankers if they transport crude oil purchased at a price higher than the set limit. The effects of this restriction are already visible in Russia.

More information on Russia

The Center for Research on Energy and Clean Air (CREA) estimates that after imposing a price cap on Russian oil, the country ruled by Vladimir Putin is losing $172 million a day. This amount will even increase to USD 280 million when the embargo on imports of Russian oil in EU countries comes into force on February 5. Russia already sells its oil for less than half the market price.

The EU embargo and price cap has finally hit and its impact is finally as significant as hoped

– says Lauri Myllyvirta, CREA analyst.

The organization believes that the European Union should look at further restrictions on the price of Russian oil. Lowering the limit to $25-35 a barrel would still be above Russia’s production and transportation costs and would result in a drop in revenues of at least another $100 million a day.