How sanctions are stifling Russia's oil exports

"Oil and gas exports have sustained Russia's finances throughout its war against Ukraine. But as the fourth anniversary of the full-scale invasion approaches, those cash flows have suddenly dwindled to lows not seen in years. It's the result of new punitive measures from the U.S. and the European Union, U.S. President Donald Trump's tariff pressure against India, and a tightening crackdown on the fleet of sanctions-dodging tankers carrying Russian oil."

"A new approach to sanctions To pressure the Kremlin to halt fighting in Ukraine, the Trump administration imposed sanctions on Russia's two largest oil companies, Rosneft and Lukoil, from Nov. 21. That means anyone buying or shipping their oil runs the risk of being cut off from the U.S banking system - a serious concern for any multinational business. On top of that, on Jan. 21 the EU began banning fuel made from Russia crude - meaning it could no longer be refined somewhere else."

Sanctions, tariffs and tighter enforcement against sanctions-dodging tankers have significantly reduced Russia's oil and gas export cash flows ahead of the fourth anniversary of the invasion of Ukraine. State revenues from taxing the oil and gas industries fell to 393 billion rubles in January, down from 587 billion in December and 1.12 trillion a year earlier, the lowest level since the COVID-19 pandemic. U.S. measures target Rosneft and Lukoil, with buyers and shippers risking exclusion from the U.S. banking system, while the EU banned fuel refined from Russian crude. The revenue shortfall has prompted increased borrowing from domestic banks and higher taxes, exacerbating slowing growth and persistent inflationary pressures.

Read at Fast Company