The revenues of the Russian Federation from foreign sales of oil, gas and coal are sky-high, having doubled in the first 100 days of the war in Ukraine, so we can state that the west’s energy sanctions regime is not working and requires immediate strengthening, the advisor to the President of Ukraine on economic issues Oleg Ustenko said in an article for the Financial Times.
As reported on the website of the head of the Ukrainian state, Ustenko said that the west has taken so far cover less than 5% of Russia’s prewar crude oil exports.
“Exports of seaborne crude, though down since mid-June, remain higher than at the start of the invasion. In large part, that is because it has been legal to import Russian oil into the EU and UK, and will remain so until at least December. Every week, some 10mn to 20mn barrels of crude arrive in Europe from Russian ports as traders turn so-called “phase-outs” into feeding frenzies,” Ustenko wrote.
According to him, in what can only be described as a global laundering operation, Russian crude is taken to foreign refineries and then imported into the US as petrol. Once the oil has been refined into other products, it can legally enter the US without breaking sanctions.
According to the adviser, this trade is likely to continue even after a complete embargo comes into effect at the end of this year. “These are hardly the embargoes… The failure to impose a genuine embargo on Russian oil and gas is turbocharging Putin’s revenues and financing war crimes in Ukraine,” he said.
According to the adviser to the President of Ukraine, anyone serious about their support for Ukraine must stop funding Putin’s regime.
“Business as usual serves only to prolong the war, which has hamstrung the entire global economy. The most effective solution must include a complete and immediate embargo on Russian fossil fuels in Europe and the rapid enactment of G7 proposals for a global price cap on Russian oil,” Ustenko said.