Finance
Four years into war, Russia's energy revenues drop but oil keeps flowing
Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: February 24, 2026
Tags:emerging markets
Quick Summary
CREA says Russia earned €193bn from fossil fuels in the year to Feb 24, 2026—down 27% from pre‑invasion—as oil keeps flowing at deeper discounts. EU eyes tougher bans, while Hungary’s veto and India’s shift add pressure on Moscow’s exports.
Russia’s Energy Revenues Slide Even as Oil Exports Continue Flowing
BRUSSELS, Feb 24 (Reuters) - The money Russia earned from exporting oil and gas dropped over the last 12 months, even as the country's oil exports increased in volume, according to data released on Tuesday, the fourth anniversary of Moscow's full-scale invasion of Ukraine.
Energy Revenues Fall, Oil Volumes Hold Up
WHY IT’S IMPORTANT
Russia relies heavily on energy revenues to support its war in Ukraine - a link that has led Western countries to impose increasingly strict sanctions on Russian fuel, seeking to weaken the country's military effort.
CREA revenue estimate
An analysis published by the non-profit Centre for Research on Energy and Clean Air found that Russia's revenues from oil, gas, coal and refined product exports totalled 193 billion euros in the 12-month period ended February 24, 2026, down by 27% from the comparable period pre-invasion.
Key Figures and Trends
BY THE NUMBERS
While Russia's gas exports have collapsed since 2022, sanctions have so far not dented Russia's oil export volumes - but, rather, forced Moscow to sell oil at lower prices.
Crude volumes and pricing
Russia's revenues from crude exports in the last 12 months decreased by 18%, year-on-year, CREA said. At the same time, crude export volumes remained 6% above pre-invasion levels, at 215 million tonnes.
Sanctions and Market Shifts
CONTEXT
Shift to Asia and shadow fleet
In response to Western sanctions, Moscow has redirected most of its seaborne crude to China, India and Turkey, often relying on a “shadow fleet” of ageing, uninsured tankers to circumvent Western sanctions.
Prospects for tougher restrictions
But tougher restrictions could hit Russian fuel exports harder this year.
Policy Moves and Risks
U.S. President Donald Trump has made diversification away from Russian crude a condition of a trade deal with India.
EU shipping-services ban debate
The European Union is discussing a sweeping ban on any business that supports Russia's seaborne crude exports, going far beyond previous sanctions. The bloc failed to pass those sanctions on Monday, as Hungary vetoed them owing to a dispute over a damaged Ukrainian oil pipeline.
Reliance on Western tankers
Russia exports over a third of its oil in Western tankers with the help of Western shipping services. The planned EU ban would end that practice, which mostly supplies India and China, and render obsolete a price cap on Russian oil purchases that G7 countries have tried to enforce.
Reporting and sources
(Reporting by Kate Abnett; additional reporting by Julia Payne; Editing by Nia Williams)
Key Takeaways
- •CREA estimates Russia earned €193bn from fossil fuel exports in the 12 months to Feb 24, 2026, 27% below pre‑invasion levels.
- •Crude export volumes remain 6% above pre‑invasion at about 215m tonnes, but crude revenues fell 18% year-on-year.
- •Sanctions have shifted most seaborne crude to China, India and Turkey, with increased use of a shadow tanker fleet.
- •EU is weighing a sweeping ban on services supporting Russia’s seaborne crude; Hungary’s veto tied to Druzhba pipeline damage delayed the move.
- •A U.S.–India trade deal under President Trump links tariff relief to India reducing purchases of Russian crude, pressuring future Russian sales.
Frequently Asked Questions about Four years into war, Russia's energy revenues drop but oil keeps flowing
1What is the main topic?
Russia’s energy revenues have fallen over the past year despite oil exports remaining robust. CREA’s analysis shows earnings down versus pre‑invasion levels as sanctions force discounts.
2How have sanctions affected Russia’s oil trade?
Sanctions haven’t cut export volumes significantly but have redirected flows to Asia and widened discounts on Russian grades, reducing overall revenue.
3What policy shifts could change the outlook in 2026?
An EU ban on shipping and insurance services for Russian crude and a U.S.–India trade deal conditioned on reducing Russian oil purchases could further curb Russia’s fuel export earnings.
