Bermuda Post

Sunday, Mar 26, 2023

EU paid Russia $16 billion for fossil fuels since the start of Ukraine war

EU paid Russia $16 billion for fossil fuels since the start of Ukraine war

Since the beginning of the Russian invasion of Ukraine, the European Union has paid over $16 billion (€15 billion) to Moscow for fossil fuel imports.
More than $5 million was paid for oil imports, around $9.5 million spent on gas, and over $385 million went to coal imports.

The data has been shared by the Centre for Research on Energy and Clean Air (CREA), an independent research organization, currently tracking how much money is still flowing from the EU's finances into the Kremlin's pockets.

To estimate the volume of fossil fuel shipments from Russia to Europe, CREA looked at the aggregate cargo capacity of ships leaving Russian ports towards EU ports, and combined that with data on reported import volume and prices (based on average value and historic prices).

"As you can see from the breakdown, gas is still the number one (import), then comes oil and then comes coal," said Lauri Myllvirta, Lead Analyst, CREA. "For both oil and coal, the shipments have fallen after the outbreak of the war [but] gas has actually increased."

Europe's dependence on Russia to keep its economy running and its homes warm has been harshly criticized since Russian troops started building up at the border of Ukraine before the start of the full-scale invasion of February 24.

According to the latest data available from the European Commission, in 2019 Europe relied on Russia for 41.1 percent of its gas imports, 46.7 percent of its solid fuels imports, and 26.9 percent of its crude oil imports.

Last year, when the first signs of tension at the Ukraine-Russia border were emerging, the EU imported 155 billion cubic meters of natural gas from Russia, almost half of its total gas imports, according to the International Energy Agency.

This dependency on Russia has not only given Vladimir Putin dangerous leverage over Europe, but also allowed the Kremlin to finance its campaign in Ukraine, as many have denounced. It is estimated that half of the Russian budget comes from fossil fuel exports.

Before the war, the EU was thought to be paying over $1.1 billion a day into this budget, thanks to its energy imports.

The EU has recently announced a plan to scale back its dependence on Russian fossil fuel imports while at the same time supporting its own Green Deal.

On March 8, the European Commission presented a proposal to cut its gas imports from Russia by two thirds before the end of 2022 on the way to become completely independent from Russian fossil fuels "well before" 2030.

"We simply cannot rely on a supplier who explicitly threatens us," said EU Commission President Ursula von der Leyen. "We need to act now to mitigate the impact of rising energy prices, diversify our gas supply for next winter, and accelerate the clean energy transition."

The way to achieve this ambitious goal, according to the EU plan, is to ensure gas supply security through diversifying its sources and speed up the roll-out of renewable energies to replace fossil fuels.

The EU proposal doesn't say much about how to decrease its reliance on Russian oil and coal, but a more detailed proposal is expected to follow up in May.

It's unlikely that the EU will be able to implement its plan this year.

European countries have been so far reluctant to give up Russian fossil fuels completely, fearing disastrous economic consequences, the severity of which Europeans are already getting a taste of with gas prices surging and roaring inflation.

According to the data collected by CREA, European money is still funding Putin's troops, tanks and private jets devastating Ukraine.

"What we have here, it's that the EU has put in place an ambitious plan to reduce and eliminate imports over the next years," said Myllvirta. "But in the immediate short term, their imports haven't been affected by these plans, and because of the high prices (of gas) the flow of money has in fact increased."

CREA is calling for an embargo on oil imports, which they see as the most realistic change to implement right now. "All European countries and the other OECD countries have strategic oil reserves, which correspond to 90 days of consumption," Myllvirta said.

"And since less than a quarter of Europe's oil comes from Russia, that means that we could in principle cover up for the oil imports for a full year."

Stopping gas imports from Russia right now, between the bloc's structural dependence on Russian supplies and gas storage level being so low, would be much harder for Europe, Myllvirta added.

Related Articles

Bermuda Post
Gordon Moore, a co-founder of Intel Corporation, died at 94
In a dramatic U-turn against His Government: Judicial Overhaul Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
Nashville police officer, and a female driver shooting one another
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History