Russia’s income from fossil fuel exports fell in December, which means that the president can’t afford to continue funding the war in Ukraine.
The researchers found that Kyiv is doing better than other parts of Ukraine when it comes to economic progress, because it focuses on cutting off Russia’s income from oil. This shows how important it is for the West to increase the pressure on Russia so that Ukraine can continue to succeed.
The Centre for Research on Energy and Clean Air found that the European Union’s ban on seaborne imports of Russian crude and the G-7’s price cap has cost Moscow an estimated $171.8 million each day.
The war in Ukraine is likely to have a long-term negative effect on Russia’s economy. The EU and other countries have imposed sanctions on Russia, which has made it difficult for the country to sell its products. This has led to a 17% drop in Russia’s earnings from fossil fuel exports in the final month of 2022. This means that Russia, one of the world’s top oil producers and exporters, is now receiving less money from sales of oil and gas.
The EU’s oil ban and oil price cap have finally kicked in, and the impact is as significant as expected. This means that we can’t use oil to make things like cars and planes anymore.
This shows that we have the tools to help Ukraine win against Russia’s aggression. We need to lower the price cap on oil so that the Kremlin can’t make money from oil sales, and we need to restrict the amount of oil and gas Russia can import.
On December 5, the Group of Seven, Australia, and the EU implemented a $60-per-barrel price cap on Russian oil. This came alongside a move by the EU and UK to impose a ban on the seaborne import of Russian crude oil.
On January 6, 2022, Russian President Vladimir Putin attended a meeting at the Kremlin. Among the items discussed were measures to reduce the country’s fossil fuel exports. This was a big change, since those exports are a big source of revenue for the Kremlin.
Energy analysts were doubtful about the impact of a price cap on Russian oil, because Moscow had been able to find other ways to ship its oil overseas.
Russia decided to ban oil sales to countries that have imposed a price cap on oil.
The spokesperson for the Kremlin has said that a price cap on Russian oil would not have an effect on Russia’s military operation in Ukraine. He also warned that imposing a price cap would destabilize the global energy market.