Europe exports oil from Russia – despite sanctions. This is how Putin earns money for the war in Ukraine

. The sanctions were intended to limit Russia’s revenues and at the same time discourage European shippers from transporting Russian fossil fuels to the rest of the world. Meanwhile, an investigation by journalists from Investigate Europe and Reporters United showed that the EU’s anti-Russian actions in this field have not brought the expected results – Moscow continues to earn large profits from exports.

Russia sanctions not working? Vladimir Putin still makes money from oil

European ships continue to export millions of tons of fossil fuels from Russia and provide key funding for Vladimir Putin’s war in Ukraine. The report states that tankers carrying , gas and coal with a carrying capacity of almost 16 million tons DWT (this is the maximum possible weight of the ship itself, cargo and supplies, crew, etc.) made hundreds of voyages after the entry into force of EU sanctions. “This is 40% of the DWT of all ships sailing from Russia. More than 100 of these shipments were destined for ports in Europe” – indicated.

Shipowners from Greece dominate the trade, but Russian fuels are also transported by ships operated from Cyprus, Denmark, Monaco, Germany, Norway, Great Britain and Italy. The journalistic investigation also found that the affected Russian state-owned company Sovcomflot still facilitates trade in Europe through an entity in the United Arab Emirates.

“Russia is reportedly building a ‘shadow fleet’ of oil tankers that could trade in fuels and remain untouched by sanctions. Sovcomflot is subject to international sanctions. However, to continue exporting fossil fuels to the EU, the company has delegated the management of dozens of its ships to a UAE-registered company,” we read. .

. Western countries prohibit insurance companies from insuring shipments of Russian crude oil if it was purchased for more than $60 a barrel. In turn, in August 2022, a regulation prohibiting the import of Russian coal to .

Although Russia’s budget actually began to lose money due to the sanctions, the Center for Research on Energy and Clean Air (CREA) estimated that Moscow still earns 640 million euros a day from exports. “Between December 5 and January 5, 689 shipments of fossil fuels left Russian ports and headed for other countries. 250 transports were made by European tankers” – emphasized.

The European Union extended sanctions against Russia

i.e. until the end of July 2023. All procedures have been completed today. The day before yesterday, the ambassadors of EU countries gave the green light for the extension.

The European Union first imposed sanctions on Russia in 2014, after it attacked eastern Ukraine and annexed Crimea. Last year, after the start of full-scale aggression, the EU began to expand and tighten restrictions. In total, it has so far adopted nine packages designed to undermine its war-fighting capabilities. The EU introduced, among other things, an embargo on oil, coal and gold imports. The sanctions also cover dual-use technologies and goods, as well as trade restrictions. In addition, European airspace was closed to Russian aircraft. The community also decided to disconnect several Russian banks from the SWIFT system and banned several Russian media from broadcasting propaganda supporting the Kremlin’s disinformation.

The economic sanctions are accompanied by a blacklist of people whose assets in Europe have been blocked. Currently, there are 1,300 people on it – headed by Vladimir Putin. There is a large group of politicians, ministers, governors, military men, propagandists and disinformers. This list is valid until mid-March and unanimity of all countries will be needed to extend it. Problems are expected in this case, because Hungary has demanded the removal of several Russian oligarchs from the sanctions list, making the consent to extend the restrictions conditional on this.