Report: Russia could be subject to EU sanctions on crude, products

A new report by a Finnish research centre predicts that Russia could lose around $300 million every day if new European Union restrictions are placed on Russian oil products.

CREA, an independent Helsinki-based Centre for Research on Energy and Clean Air (CREA), reported Wednesday that Russia’s current EU ban on crude oil imports from Russia and the oil price cap are costing the Kremlin around $172 million each day.

CREA noted that Russia’s fossil fuel export earnings fell by 17% in December. This is the lowest level since its invasion of Ukraine in Spring last year.

“The country’s export revenues have fallen by EUR 180 millions per day due to a fall in oil prices and shipment volumes. According to the report, Russia was able to recover EUR 20 million per daily by increasing its exports of refined oils products to the EU.

The report also notes that Russia saw a 12% decrease in its crude oil exports and a 23% drop on its selling prices, resulting in a drop of 32% in crude oils revenues for December.

CREA still states that Russia makes an estimated EUR640 million per day from fossil fuel exports. This is down from the high of EUR1000 mn in March-2022.

“The EU’s ban on refined oil imports, extension of the price cap for refined oil and reductions at pipeline oil imports into Poland will reduce this by approximately EUR 120 mn per hour by February 5”.

The European Union’s ban against the import, purchase and maritime transportation of Russian crude oil went into effect December 5. It will now be extended to other refined petroleum products beginning February 5. Russian oil will be sold at $60 per barrel under the G7 price caps.