Targeting Russian oil revenues
The EU has prohibited the import of seaborne crude oil and refined petroleum products from Russia. The impact of the oil ban on Russia is significant. Around half of its total oil exports go to the EU. In 2021, the EU imported €71 billion worth of oil: crude oil (€48 billion) and refined oil products (€23 billion) from Russia. Losing this leading lucrative market has a significant structural effect on Russia, whose budget relies substantially on these oil revenues.
Price caps, agreed with the G7+Price Cap Coalition, have further reduced the revenues Russia earns from oil and also helped stabilise global energy markets. The price caps prevent EU operators, for example, from providing transport or insurance services for the transport of Russian oil above the cap. Three price caps are currently in place, on the export of
- Russian seaborne crude oil, fixed at a maximum price of US$60 per barrel
- “premium-to-crude” petroleum products, such as diesel, kerosene and gasoline, fixed at US$100 per barrel
- “discount-to-crude” petroleum products, such as fuel oil and naphtha, US$45 per barrel
- in addition, to help tackle the ‘shadow fleet’ used by Russia to circumvent the price caps, the G7+ Price Cap Coalition has recently introduced measures to closely monitor the sale of tankers to third countries
Other energy measures
- an import ban on all forms of Russian coal
- an import ban on liquified petroleum gas (LPG), impacting annual imports worth over €1 billion, with an exemption for existing contracts for a maximum period of 12 months
- a ban on new EU investments in the Russian mining sector, with the exception of certain raw materials
- a ban on exports of specific refining technologies, making it harder and more costly for Russia to upgrade its oil refineries
- a far-reaching ban on new investment across the Russian energy sector, with limited exceptions for civil nuclear energy and the transport of certain energy products back to the EU
- prohibiting Russian nationals or entities from booking gas storage capacity in the EU Member States
- end the possibility to import Russian oil by pipeline for Germany and Poland