Since the invasion of Ukraine, Russia has earned 158 billion euros from hydrocarbon exports.

One hundred and fifty-eight billion euros. That’s the most Russia pocketed in the first half of the year since its invasion of Ukraine began, and the European Union (EU) was the main recipient thanks to its hydrocarbon exports. A report by experts from the Center for Research on Energy and Clean Air (CREA) was released on Monday, September 5.

“At least 43 billion euros have entered the treasury of the Russian state (in 2021, the federal budget is 230 billion euros) thanks to taxes and customs duties since the beginning of the war”, Lead author Larry Milevirta believes so. At this stage, He adds, “These revenues exceed the cost of Russian military spending estimated at 100 billion euros, while the destruction of Ukrainian infrastructure is estimated at 110 billion”.

The reason for such a bonanza? Expenses. Despite the sanctions, Moscow was able to efficiently compensate for the lower volumes exported, especially due to rising prices in European markets, despite falling imports from the EU. In gas, for example, the risk of drying up flows has prompted a stratospheric increase, with wholesale prices more than tripling compared to 2021. In other words, in July-August, compared to 2021, the export volume decreased by 25%. During the same period, revenue increased by 30%. results, “Gas imports may have dropped by 70%, but this country’s export earnings have not dropped at all”.

In the first half of the year, the EU still imported more Russian fossil fuels (85 billion euros) than China, Turkey and India. Within the EU, Germany ranks first, followed by the Netherlands, Italy, Poland and France (€5.5 billion).

China replaced Germany

However, a panorama that failed to develop in the coming months. The EU, NATO and G7 countries (actually EU, Turkey and Japan) together imported 56% of Russia’s fossil fuel exports in July-August. But this figure, while substantial, is down 75% from pre-invasion levels, especially in Europe.

During this period, Russian gas sales (by “pipeline”) fell 56% overall, while coal and liquefied natural gas fell 29% and 15%, respectively. The only exception: black gold. In this area, the EU ban will not come into effect until December 5, and Russia has managed to increase its sales (+ 19%). Through new outlets in India, China, UAE and Egypt.

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