Higher prices, instead of volumes, are responsible for most of this increase. The European Union accounted for about 70 percent of Russia’s fossil fuel exports worldwide, amounting to 63 billion euros ($ 66.3 billion) in the two-month period. Energy prices rose last year as nations emerged from lockdowns, pushing demand. Russia’s invasion of Ukraine has further boosted oil and gas prices. OPEC member states also failed to achieve the promised production increases, resulting in a further tightening of supply. The European Union imported 10% more Russian pipeline gas every two months and 20% more liquefied natural gas, but exports of Russian oil and coal to the bloc fell by 20% and 40% respectively. The findings come as Europe comes under increasing pressure to ban Russian oil imports and expedite its withdrawal from Russian gas to stop enriching the Kremlin and indirectly financing the war in Ukraine. It also comes as Russian energy company Gazprom cut off gas supplies to Poland and Bulgaria in a bid to force European companies to pay in rubles. Russia is trying to support its spiral currency. The Russian economy has been swept away by Western sanctions targeting the county’s central bank and freezing about half of the country’s $ 600 billion foreign exchange reserves. “The fact that their funds are inflated due to the unexpected revenues that have escaped the prices of fossil fuels is a very distorted result,” Myllyvirta told CNN. The rapid weaning of Russian fossil fuels will be a challenge for the 27-nation bloc, which before the war depended on Russia for about 40 percent of its gas imports, as well as 27 percent of its oil and 46 percent of its imports. coal. The abrupt termination of these markets would have a serious negative impact on consumers and businesses. It is particularly difficult for Germany, which has been the largest single buyer of Russian fossil fuels in the world since the invasion, with purchases worth 9.1 billion euros, according to CREA. Italy was the next largest buyer, transporting 6.9 billion euros to Russia, followed by China, the Netherlands, Turkey and France. The European Union has pledged to end its dependence on Russian energy by 2027 and is working on an oil embargo that could be announced as early as next week, but the report shows that the diversification measures announced so far will have little effect. short term . “Everything that has been announced about green energy and energy efficiency is impressive, if you look at the potential impact in the coming years,” Myllyvirta said. “But, as mentioned, the short-term component – which would do as much as possible to limit Russia’s revenues in the near future – was really deficient.” To reach its conclusions, CREA researchers monitored maritime deliveries using ship location data (AIS) and pipeline deliveries using data from Eurostat and the European Network of Transmission System Operators. Many European energy companies are now in talks with Gazprom over their gas contracts. On Thursday, German company Uniper and Austrian company OMV said they believed it was possible to comply with Moscow’s new payment mechanism without compromising EU sanctions.
