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The Impact of Sanctions on Russia's Fossil Fuel Exports

In a recent video, a Financial Analyst and YouTuber going by the moniker ‘Joe Bloggs’ delved into the current state of Russia's fossil fuel exports, particularly in the wake of sanctions imposed by the West following Russia's barbaric invasion of Ukraine.  The video analysis was of such good quality I wanted to share it with you.

Here are the key takeaways:

  1. Russia's Dependence on Fossil Fuels: Russia's economy has been heavily reliant on the export of natural resources, particularly oil and natural gas. Prior to the invasion of Ukraine, the sale of fossil fuels accounted for the majority of Russia's revenue, with the European Union being its biggest customer..
  2. The Effect of Sanctions: Following the invasion, the European Union and other Western countries imposed sanctions on Russia, refusing to buy Russian fossil fuels. The sanctions have significantly reduced Russia's revenue from fossil fuel exports.
  3. The Impact on Russian Economy: The sanctions have led to a significant reduction in Russia's revenue from fossil fuel exports. Prior to the invasion, Russia was earning around 775 million euros per day from all of its fossil fuel exports. However, by mid-2023, this figure had dropped to around 450 million euros per day, representing a loss of around 325 million euros every single day.
  4. The Price Caps: To limit the amount of revenue that Russia could earn from its fossil fuel sales, the West introduced price caps on Russian oil. The first was a price cap of sixty dollars per barrel for Russian crude oil sales, and the second was a price cap of a hundred dollars per barrel for refined product sales. Russia has tried to circumvent these caps, but the majority of its sales are locked into these price caps due to the dominance of Western-owned or insured ships in the international shipping market.
  5. The Future of Russian Fossil Fuel Exports: Russia is currently facing significant challenges in monetizing its vast reserves of natural gas. With the loss of its European customers and the difficulty of transporting gas to new markets like India and China, Russia's future in the fossil fuel export market is uncertain.

This analysis by Joe Bloggs provides a comprehensive understanding of the current state of Russia's fossil fuel exports and the impact of Western sanctions on its economy. The situation continues to evolve, and it remains to be seen how Russia will navigate these challenges in the future.

Country analyses such as this one are essential when evaluating future market entry plans… while Russia will be off most trader’s radar for the foreseeable future there are over 200 countries and territories around the world with markets of varying sizes.  Having the knowledge and confidence to evaluate and approach these markets is essential for export success!  That’s why we run the International Trade Specialist Accreditation Programme which is designed to take export staff from Zero to Hero in between 3 months and 10 months depending on the learners time commitment.  You will have access to the course materials and updates for 2 years and ongoing access to our Bonus Continuous Professional Development library after graduation which will offer over 100 CPD course topics at any one time for graduates to choose from free of charge.


To learn more about the International Trade Specialist Programme and enrol visit and reach for new global markets today!

To view the full 29 minute video from Joe Bloggs visit and remember to subscribe to his channel for further updates and country reports.

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