Germany paid Russia over €12 billion for fossil fuels in first 100 days of Ukraine war

Germany paid Russia over €12 billion for fossil fuels in first 100 days of Ukraine war

Germany paid Russia more than €12 billion for fossil fuels in the first 100 days of war in Ukraine as Russia is now set to make more money from oil and gas than last year.

Russia made €93 billion for its fossil fuel exports between February 24 and June 3, with some countries actually increasing their oil and gas purchases from Moscow during the war, according to the report from the Centre for Research on Energy and Clean Air (CREA), an independent research organisation based in Finland.

Rising prices mean Russia is on track to make more money from fossil fuels sales this year than in 2021, forecasters have predicted, with the European Union so far responsible for the biggest contribution to the Kremlin’s coffers.

The EU accounted for 61 per cent of Russia’s fossil fuel exports during the war’s first 100 days – worth about 57 billion Euros, even as the bloc moved to reduce its dependence on Russian energy.

Russia’s average export prices were about 60 per cent higher than last year, according to CREA.

“Fossil fuel exports are a key enabler of Russia’s military buildup and brutal aggression against Ukraine,” the report’s authors wrote.

“Ukraine’s government and civil society have been clear in their calls to terminate all fossil fuel purchases and other business with Russia’s regime; yet most countries and companies have continued to buy oil, coal and gas from the aggressor.”

France increased energy purchases after war began

After China, which bought €12.6 billion worth of oil and gas, Germany was Moscow’s single biggest customer, spending €12.1 billion on Russian fossil fuels.

The researchers found that Germany has managed a “modest” cut to its oil imports from Russia, but some countries including China, India, the United Arab Emirates and France, actually increased their energy purchases even as the Kremlin’s war unfolded.

“As the EU is considering stricter sanctions against Russia, France has increased its imports to become the largest buyer of LNG in the world,” Lauri Myllyvirta, a CREA analyst, said.

Since most of these are spot purchases rather than long-term contracts, Mr Myllyvirta said, France is consciously deciding to use Russian energy in the wake of Moscow’s invasion.

He called for an embargo on Russian fossil fuels to “align actions with words”.

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Last Update: Mon, 13 Jun 22 06:35:07