Page 6 - FSUOGM Week 24 2022

FSUOGM COMMENTARY FSUOGM

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
Panel no indent tre for Research on Energy and Clean Energy alternative suppliers under the REpowerEU
Panel indent (CREA), and the EU remains the largest buyer of plan, which it says could result in a two-thirds
Russian gas and oil, even after the sixth package reduction in Russian gas deliveries to the bloc by
WHY: of sanctions was put in place that target energy. year-end.
Panel no indent Despite the West’s push to phase out Russian However, the report by CREA starkly indi-
Panel indent energy imports and deprive the Kremlin of rev- cates how much money the EU continues to
enues to finance its war in Ukraine, the country’s hand over to Moscow in return for fulfilling its
WHAT NEXT: export revenues were in fact up by almost 40% energy needs. Out of the total of €93bn ($97bn)
Panel no indent year on year in May, on the back of soaring global that the country earned on fossil fuel exports, the
Panel indent 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
sever energy ties with Russia over its actions in gas exports, 75% of its revenues from oil product
Ukraine, having already introduced a ban on sales, 75% from LNG, 50% from crude oil and
coal imports from the country and agreed an 30% from coal.
embargo of up to 90% of oil supplies by the end Russian energy imports were significantly
of the year. While reluctant to take similar steps affected in May by disruptions and heavy

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