Page 4 - EurOil Week 24 2022

EurOil COMMENTARY EurOil

Russian energy export revenues up

40% in May despite sanctions

Despite bold commitments, the EU still absorbs the bulk of Russian hydrocarbon

exports, and the price spike means Moscow earned 40% more revenues from

overseas sales in May than a year before.

RUSSIA RUSSIA’S revenue from energy exports in the regarding Russian gas, the European Commis-
first 100 days of the war amounted to €93bn, sion is calling for member states to make dras-

WHAT: according to a study by the Helsinki-based Cen- tic cuts to gas use and increase imports from
Despite EU efforts to tre for Research on Energy and Clean Energy alternative suppliers under the REpowerEU
phase out Russian oil (CREA), and the EU remains the largest buyer of plan, which it says could result in a two-thirds
and gas, the country’s Russian gas and oil, even after the sixth package reduction in Russian gas deliveries to the bloc by
revenues from these of sanctions was put in place that target energy. year-end.
exports continue to climb. Despite the West’s push to phase out Russian However, the report by CREA starkly indi-
energy imports and deprive the Kremlin of rev- cates how much money the EU continues to
WHY: enues to finance its war in Ukraine, the country’s hand over to Moscow in return for fulfilling its
Price gains have more export revenues were in fact up by almost 40% energy needs. Out of the total of €93bn ($97bn)
than offset the drop in year on year in May, on the back of soaring global that the country earned on fossil fuel exports, the
volumes. prices, data published by CREA shows. EU accounted for €57bn, or 61%. The bloc con-
The EU is making a concerted push to tributed 85% of Russia’s revenues from pipeline
WHAT NEXT: sever energy ties with Russia over its actions in gas exports, 75% of its revenues from oil product
CREA calls for sanctions Ukraine, having already introduced a ban on sales, 75% from LNG, 50% from crude oil and
to target Russian oil coal imports from the country and agreed an 30% from coal.
shipping to make a embargo of up to 90% of oil supplies by the end Russian energy imports were significantly
greater impact. of the year. While reluctant to take similar steps affected in May by disruptions and heavy

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