Oil field in Tatarstan: "Significant impact" of the sanctions
Photo: Yegor Aleyev / ITAR-TASS / IMAGO
The European price cap for oil is intended to reduce Russian income and thus make it more difficult to finance the Ukraine war.
Researchers at the Finland-based Center for Research on Energy and Clean Air (CREA) have now calculated how expensive the price cap and other sanctions will cost the country.
Russia is losing an estimated 160 million euros in oil revenues every day compared to the period from September to November last year.
After the planned expansion of sanctions, which should come into force on February 5, daily Russian revenues are likely to fall by as much as 280 million euros.
This already includes the fact that the country earns more money because it supplies more oil products to other countries.
According to the calculations, in December 2022 Russian revenues from energy transactions fell by 17 percent.
According to CREA analysts, the country is earning less from its energy exports than it has at any time since the beginning of the Ukraine war.
The end of the pipeline oil deliveries to Germany alone means that Russia loses the sum of 18 million euros every day.
Nevertheless, the sale of oil and gas remains a lucrative business for the Kremlin: CREA analysts estimate the daily income from the sale of fossil fuels at 640 million euros.
The effects of the sanctions and the price cap are "as significant as expected," says Lauri Myllyvirta, senior analyst at CREA.
"This shows that we have the tools to help Ukraine assert itself against Russian aggression."
According to the CREA, Russia is more dependent than ever on the proceeds from the sale of fossil fuels.
"Further losses in Kremlin revenue will therefore severely weaken the country's ability to continue its attacks and help end the war."
The oil price cap of the EU, the G-7 countries and Australia has been in effect since the beginning of December and provides for a price cap of 60 dollars.
In response, Russia issued an export ban to countries with a price cap.
At the beginning of the year, Germany stopped all oil imports from Russia.