Who gives Russia Money to contest in Ukraine
Financing Putin's War. Fossil Fuel Imports from Russia in First 100 Days of Invasion"
On June 13, Finnish researchers in the field of energy and clean air published an article with this title on their website.
In the condition of strategic exclusion of Russia from the world economy in order to reduce the possibility of obtaining reserves for the continuation of military aggression on the territory of Ukraine, some countries continue to buy fossil fuels from Russia. Fossil fuel is a primary product of the Russian market, the implementation of which allows increasing military resources for the continuation of aggression against Ukraine and the elimination of the people of the free and sovereign state of Ukrainians. In order that the world community know those who do not help to stop but on the contrary, "sponsor" this bloody terrorist act of Russia, buying oil, gas or coal.
The Center for Energy and Clean Air Research has compiled detailed information on Russia's pipeline and marine fossil fuel trade.
The main conclusions of specialists:
1. The Kremlin's military budget is replenished due to the sale of fossil fuels. The import of which from February 24 to June 3, 2022 (one hundred days) provided the Russian treasury amounting to 93 billion euros. The largest part of this amount is the contribution of the countries of the European Union is 61%, with a total amount of 57 billion euros.
2. Revenue consists of approximately €46 billion from crude oil sales, €24 billion from pipeline gas, €13 billion from petroleum products, €5.1 billion from liquefied natural gas (LNG) and €4.8 billion from coal.
3. China was the largest exporter with a share of 12.6 billion euros. In second place is Germany, the size of whose exports was only half a billion euros less - 12.1 (although only in terms of the size of the territory, China is 27 times larger than Germany). Italy and the Netherlands paid Russia approximately the same - 7.8-7.9 billion euros each. Turkey purchased fuel worth 6.7 billion euros. Poland, which refused to buy for the present, but managed to pay Russia 4.4 billion euros since February. France purchased 4.3 billion euros. India, which has already increased procurement volumes by 20% relative to 2021and, exported 3.4 billion euros over the same period.
Since March, Russia's income has been falling under the influence of sanctions, but remains at a record high.
In May, import volumes modestly fell down about 15 % in comparison with the time before invasion, as many countries and firms avoided Russian supplies. The decrease in demand and the preferential price for Russian oil cost the country approximately 200 million euros per day in May. However, increased demand for fossil fuels led to excess profits: Russia's average export prices were on average 60% higher than last year, even when discounted to international prices. China has overtaken Germany as the largest importer. China's imports doesn’t change, while Germany has managed to decrease its oil imports from Russia. Poland and the United States made Russia's biggest incomes. Lithuania, Finland and Estonia have achieved sharp percentage reductions of more than 50%.
Historically high fossil fuel prices and the desire to reduce dependence on Russia have inclined towards growing desire for clean energy and energy efficiency in Europe, which will effectively reduce the impact of the ban on imports from Russian.
The results of the reduction of dependence on Russia's energy carriers in the world:
India, the Middle East, France and Belgium are focusing on discounted Russian fuel.
Imports increased in India, France, China, UAE and Saudi Arabia. India has become a significant importer of Russian crude oil, buying 18% of the country's exports. A significant proportion of crude oil is re-exported as refined products, particularly to the US and Europe, which is an important loophole which is necessary to close. European buyers in France, Belgium and the Netherlands bought most of the short-term cargoes at a discount, buying LNG and crude oil on the spot market. These purchases are made outside of previous contracts and are therefore always an active purchase decision.
A large part of Russian fossil fuels is transported on European ships.
As Russian oil is increasingly shipped to distant markets, more tanker capacity is needed than ever before. This is a key vulnerability, severe sanctions against tankers transporting Russian oil will greatly limit the scope for this kind of diversion of Russian exports. In April and May, ships of EU, UK and Norwegian companies carried out 68% of Russian crude oil deliveries, with only Greek tankers carrying 43%. For deliveries to India and the Middle East, the share was even higher near 80%. 97% of tankers were insured only in three countries: Great Britain, Norway and Sweden.
15 oil, energy and industrial companies continued purchases in May, while others may stop.
Against the background of a reduction in purchases of Russian resources, companies that continued to sponsor Russia's aggression remained. 15 oil companies continued purchases in May such as oil companies Exxon, Shell, Total, Repsol, Lukoil, Neste and Orlen; power companies Taipower, Chubu Electric Power, TEPCO and Trieste TPP; industrial companies Nippon Steel, POSCO, Formosa Petrochemical Corporation and JFE Steel. Malaysia's national electricity company TNB joined the list in May. Instead, some companies that received several shipments before May did not accept further parcels of cargo during the month. This includes Kyushu Electric Power, Tohoku Electric Power, KEPCO, Hyundai Steel, Sumitomo, Mitsubishi and Enagas. It is not known if they stopped buying or if there was simply no supply in May.
The governments of countries whose energy resources are maximally dependent on supplies from Russia should reduce imports as much as possible, not only to end the war and preserve the lives of Ukrainians and Ukraine as a whole, but also to preserve the ecology of the planet. Green energy is the healthy future of all countries of the world.