+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

The EU has been trying to cut back on Russian oil, but it's still buying more of it than anyone else

Oct 10, 2022, 16:18 IST
Business Insider
A protest calling for a Russian oil embargo in Cologne, Germany.Ying Tang/NurPhoto/Getty Imags
  • The EU remained the largest importer of Russian fossil fuels in September, according to the CREA.
  • It has imported over 100 billion euros worth of Russian fuel since the Ukraine war started.
Advertisement

Despite a pledge to wean itself off Russian energy, the European Union remained the largest importer of Russian fossil fuels in September, according to a report from the Centre for Research on Energy and Clean Air, or CREA, released on October 4.

From the start of the Ukraine war until late September, the EU spent more than 100 billion euros, or $97 billion, on Russian fossil fuel imports, the report found. That's despite a decrease in the EU's imports of Russian fossil fuels, which dropped 14% from August to the end of September, and 50% from March to the end of September, the CREA wrote in its report.

China is the second-biggest buyer of Russian oil, behind the EU.

The decline is in part due to a fall in natural-gas supplies after Gazprom halted deliveries via Nord Stream 1. The EU has also banned coal imports since August. The move aims to cut Russia's energy revenue, which funds the Ukraine war. Energy is a key pillar of Russia's economy, accounting for over one-fifth of its GDP.

There are other countries taking over some of the EU's lost market share in Russia. The emerging markets of India, China, Turkey, and Malaysia have been snapping up Russian fuel, with imports rising significantly since the start of the Ukraine war, the CREA added.

Advertisement

While Russian fossil fuel exports by volume are down by about a third since the war started, high energy prices have been propping up the Kremlin's coffers.

"Surging fossil fuel prices mean that Russia's current revenue is far above previous years' level, despite the reductions in this year's export volumes," the CREA wrote in an August report.

Crude oil futures are up about 20% year to date. Benchmark European natural-gas futures have more than doubled in the same period.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article