West's Russian fuel imports worth $2 billion continue to fund Putin's war machine in 2024
Western countries continue to purchase fuel made from Russian oil, using a loophole in sanctions that allows Moscow to finance military operations in Ukraine, according to a report soon to be published by the Centre for Research on Energy and Clean Air and the Center for the Study of Democracy, as seen by POLITICO.
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The analysis shows that in the first half of 2024 alone, the EU, US, UK, and other Western countries imported about $2 billion worth of fuel produced from Russian oil by three Turkish refineries. While direct imports of Russian oil are banned, sanctions do not prohibit countries from buying products if they have been processed in a third country, such as Turkey.
This scheme has helped Turkey significantly increase its purchases of Russian oil, receiving discounts from Moscow. According to the report, Turkey increased its oil imports from Russia by 70% in 2024, earning $5 to $20 per barrel. However, these savings are not passed on to end consumers in the EU, and only companies and traders benefit.
Despite sanctions, the oil sector remains a key source of funding for the Russian war machine. Revenue from taxes on fuel sold to Western countries allows Russia to recruit an additional 6,200 soldiers monthly for the war in Ukraine, the publication notes.
The report's authors highlight that some Turkish refineries, particularly the Azerbaijan-owned Star Aegean, rely on 98% Russian oil, despite US sanctions targeting Lukoil, their main supplier. Nearly 90% of this refinery's products end up in Western countries that support Ukraine.
At the time of publication, the European Commission and the Turkish Ministry of Energy had not commented on the situation.
Russian company Lukoil plans to resume oil supplies through the Druzhba pipeline to Slovakia and Hungary in October, after Hungarian MOL announced the unblocking of crude oil transportation through Belarus and Ukraine.
