In the ongoing conflict between Russia and Ukraine, which has entered its fourth year since the full-scale invasion commenced in February 2022, Russia continues to find substantial financial support from its sales of fossil fuels, particularly to Western nations. This situation has raised significant concerns regarding the apparent paradox of Western governments indirectly fueling Russia’s military operations through their energy purchases.
According to investigative reports by the BBC, Russia has generated over €883 billion (approximately $973 billion or £740 billion) in revenue from its fossil fuel exports since the onset of the war. This figure is alarming, especially considering that it surpasses the financial aid received by Ukraine from its western allies. Data from the Centre for Research on Energy and Clean Air (CREA) indicates that Western countries have paid Russia substantially more for hydrocarbons than they have contributed to support Ukraine’s defense efforts. This financial inflow into Russia has effectively sustained its military aggression against Ukraine.
Significantly, oil and gas revenues account for nearly a third of the state revenue of Russia and constitutively form over 60% of its overall exports. Despite the imposition of sanctions in the aftermath of the invasion, the demand for Russian energy resources has not diminished significantly. The European Union (EU), the United States, and the United Kingdom have enacted bans on certain Russian oil and gas imports; however, loopholes remain. Even as imported fuels face scrutiny, certain EU nations have continued to receive Russian gas through pipelines, and indirect purchasing through third-party countries adds layers of complexity to sanction enforcement.
While sanctions initially aimed at curbing Russian energy exports included a ban on seaborne crude oil, gas imports via pipelines remained untouched— a notable vulnerability that Russia capitalized on. As of the end of May 2025, a staggering portion of Russia’s gas sales to Europe was routed through Turkey, with CREA noting a sharp increase in gas volumes reaching Europe from Russian suppliers. This not only indicates the resilience of Russian export channels but also highlights the ongoing reliance of several EU member states on Russian fossil fuels.
The financial windfall that Russia enjoys raises questions about the effectiveness and commitment of Western sanctions. Although the sanctions led to a slight decline— 5%—in Russian revenue during 2024, the overall situation indicates a strong resilience in Russian exports. Data points reveal that revenues from crude oil saw a 6% increase, owing to a rise in global oil prices and demand that compensates for some of the lost market access in the West. This ongoing dependency of Western powers on Russian fossil fuels has contributed to the hesitance to enforce stricter sanctions, influenced notably by fears of soaring energy prices and potential economic repercussions within their own borders.
Critics point to the existence of what is termed the “refining loophole,” whereby Russian oil is processed in third-party countries—like India and Turkey—before being sold back to sanctioning nations disguised as fuel products from different origins. CREA has identified facilities that have processed significant quantities of Russian crude and funneled the refined products back to Western markets. This practice not only undermines the intentions of sanctions but also fuels the narrative that without unified and stringent measures, Russia continues to thrive through indirect channels.
As geopolitical tensions ratchet up, campaigners and analysts alike have implored that Western nations need to adopt bolder strategies to overcome their dependency on Russian energies. Experts argue for the necessity to cut imports of liquefied natural gas (LNG) entirely and to end the loopholes allowing for the indirect purchase of Russian oil.
Acknowledging the moral and strategic dilemmas presented by Western energy policies—supporting Ukraine while simultaneously funding Russia’s war efforts—calls into question the rationale behind sustaining such dependency on hostile regimes. The ongoing war in Ukraine presents a complex geopolitical challenge where energy resources intertwine with military capabilities, necessitating a fundamental rethink on the energy policies extended by Western governments moving forward.