Page 15 - FSUOGM Week 09 2023
P. 15
FSUOGM POLICY FSUOGM
Russia still earning half a billion dollars
a day from oil exports
RUSSIA DESPITE major efforts by the US, the EU and world market prices due to the war caused Rus-
other countries to restrict Russia's fossil fuel rev- sian earnings to soar.
The price caps should enues, the country is still earning more than half The EU banned the import of Russian sea-
bring down revenues a billion US dollars from oil and gas sales per day, borne crude oil in December and of Russian
further, however. according to think-tank Center for Research on petroleum products in February, which is
Energy and Clean Air. However, the organisa- already included in CREA's latest figure. Yet EU
tion says that by lowering the price caps Western countries continue to import Russian oil and gas
nations have been enforcing on Russian crude via pipeline or as LNG. Additionally, G7 nations
oil to $30 a barrel and by ending all pipeline and in December agreed to establish an international
LNG exports from Russia to the EU, Russia's price cap of $60 per barrel of Russian crude,
daily earnings from fossil fuels could dip as low enforced by prohibiting the involvement in any
as $340mn in the future, Statista reports. higher-priced shipments of insurers or operators
Russia's current earnings are only somewhat from the G7 or the EU, which is where most of
below what the country was making from fossil the respective companies are located. However,
fuels on an average day in May 2021. After the according to CREA, a price cap around $30,
country invaded Ukraine one year ago, its earn- closer to Russia's production price, would make
ings initially rose. Despite several nations begin- more sense and would lead to about the same
ning to boycott Russian fossil fuels right away reduction in Russian revenues as the entire EU
and the country having to give discounts on sales ending its remaining fossil fuel dependency on
to its remaining customers, the highly elevated Russia.
Week 09 02•March•2023 www. NEWSBASE .com P15
