IEA data explains why sanctions against Russia are working

The energy markets have stabilized and Moscow’s revenues have reduced: from the 30 billion in exports invoiced before the war, Putin’s revenues have now stopped at 18.5 billion

According to data from the International Energy Agency (IEA), in January Russia’s revenues from oil and gas exports have shrunk by about 40 percent. During the same period last year, when the war had not yet started and global prices were under control, Moscow’s revenues from oil and gas exports amounted to 30 billion dollars while in January of this year they stopped at 18.5 billion. This is due to the European disengagement from Russian gas and Western sanctions on Ural crude, which according to IEA director Fatih Birol have achieved two main objectives: to stabilize global energy markets and reduce Moscow’s revenues from hydrocarbon exports. Indeed, in the case of Russian oil, the collapse in revenues occurs despite the fact that export volumes have remained fairly constant. In December, the European Union blocked imports of Russian oil by sea, while in February it extended the embargo to refined products. Third countries can continue to trade Russian barrels using the financial services of Western countries as long as they respect price caps, which for now are higher than the prices at which Russian crude is actually sold compared to the values ​​of Brent.