Tag: Global Energy Market
Trump’s Sanctions Hit Russia’s Oil Giants: Maria Perrotta Berlin Discusses the Impact
In a new Associated Press (AP) report, the United States and European Union have jointly announced fresh sanctions on Russia’s leading oil producers, Rosneft and Lukoil. The measures aim to cut revenue funding for Moscow’s war in Ukraine and signal the Trump administration’s first major sanctions package on Russian oil since returning to office.
This move underscores Washington’s tougher stance toward the Kremlin’s war economy and its global oil trade network.
Sanctions Are Powerful, But Often Come Too Late
“The sanctions are large and powerful, but they have always come a little too late,” said Maria Perrotta Berlin, Assistant Professor at the Stockholm Institute of Transition Economics (SITE).
Perrotta Berlin explained that Russia’s shadow fleet and complex web of traders have helped it adapt to earlier restrictions. However, she noted that the new measures, which threaten secondary sanctions on Indian and Chinese refiners, could have a more immediate chilling effect on Russian oil exports.
Sanctions Pressure on Putin and Russia’s Oil Strategy
According to the AP article, the sanctions aim to pressure President Vladimir Putin to consider President Donald Trump’s proposal for an “immediate ceasefire.” Analysts caution that while the sanctions won’t cripple Russia’s economy overnight, they could increase long-term costs, reduce oil revenues, and expose vulnerabilities in Moscow’s energy strategy. In parallel, the European Union’s ban on Russian LNG imports and the sanctioning of 117 additional tankers amplify the economic pressure on Russia’s fossil fuel sector.
To read Maria Perrotta Berlin’s full commentary and detailed analysis on how Trump’s sanctions are reshaping Russia’s oil policy, see the full AP article on the Associated Press website.
Further Reading: Sanctions, Energy, and Russia’s War Economy
Energy exports remain the backbone of Russia’s economy and a tool of geopolitical leverage. Sanctions targeting this sector aim to reduce state revenue and limit Moscow’s influence abroad.
- Explore the Sanctions Portal Evidence Base to access the latest research on energy sanctions against Russia.
- Review the Timeline of Western Sanctions and Russian Countermeasures to understand how both sides have adapted since the full-scale invasion of Ukraine.
For more expert insights and economic analysis, visit the SITE website.
Russian Oil Revenues Dip to $13.5B on Lower Prices
Russian oil revenues fell to $13.5 billion in August 2025, down $0.9 billion from July, according to the September Russian Oil Tracker by the KSE Institute. The decline came as prices for crude oil and most oil products, except naphtha, dropped despite stable export volumes. Crude oil revenues slipped by $0.4 billion to $8.8 billion, while oil product revenues fell by $0.6 billion to $4.8 billion.
Falling Russian Oil Revenues
Seaborne exports of crude oil declined by 1.4%, and oil product exports by 1.7% compared to July. Only 21% of crude oil and 82% of oil products were shipped on tankers covered by the International Group (IG) P&I insurance, underscoring Russia’s growing reliance on uninsured or “shadow” vessels.
The Shadow Fleet Expands
According to the KSE Institute, 155 Russian shadow fleet tankers transported crude and oil products in August 2025, including those engaged in ship-to-ship (STS) transfers. Alarmingly, 86% of these vessels were over 15 years old, which raises significant safety and environmental concerns.
India and Turkey Remain Key Buyers
India held its position as the largest importer of Russian seaborne crude, taking in 1,504 kb/d in August, down 11% month-on-month but still 45% of total Russian exports. Turkey continued to dominate oil product imports, purchasing around 425 kb/d, highlighting the nation’s central role in processing and reselling Russian fuel.
Sanctions and Price Caps Under Pressure
Western allies, including the EU, US, UK, Canada, Australia, and New Zealand, have sanctioned 535 Russian oil tankers. Yet, the number of tankers violating sanctions continues to rise monthly, showing gaps in enforcement.
In August 2025, Urals crude traded below the G7/EU price cap, while ESPO crude traded well above it. All refined products, except naphtha, remained below the cap, reflecting how outdated cap levels have become.
Key Research Findings on Russian Oil Revenues
- Total revenues: Down to $13.5 billion in August 2025.
- Crude oil: $8.8 billion; oil products: $4.8 billion.
- Shadow fleet: 86% of tankers are over 15 years old.
- India: 45% of seaborne crude imports.
- Sanctions: Weak enforcement allows rising violations.
Future Outlook for Russian Oil Revenues
Under current caps and sanctions, the KSE Institute projects Russian oil revenues of $155 billion in 2025 and $125 billion in 2026. If discounts widen to $40/barrel (Urals) and $30/barrel (ESPO), revenues could plunge to $136 billion in 2025 and just $46 billion in 2026. However, if sanctions enforcement remains weak, revenues may climb to $161 billion in 2025 and $146 billion in 2026, a significant boost despite international restrictions. Since March 2022, total Russian oil export losses are estimated at $159 billion, reflecting the lasting financial impact of the full-scale invasion of Ukraine.
Meet the Researchers
- Borys Dodonov, KSE Institute
- Benjamin Hilgenstock, KSE Institute
- Anatolii Kravtsev, KSE Institute
- Yuliia Pavytska, KSE Institute
- Nataliia Shapoval, KSE Institute
Read the Full Report
Read the complete “Russian Oil Tracker – September 2025” on the KSE Institute website for detailed charts and policy scenarios.
Additional Reading
Explore other policy papers and reports on Ukraine’s economic transition and development on the KSE Institute’s website. Read more policy briefs on Eastern Europe and emerging economies on the FREE Network’s website.