Ukraine urges West to cut off all trade with Russia

Ukraine urges West to cut off all trade with Russia

 A new report says most exports go to European countries as Ukraine urges the West to cut off all trade with Russia. Russia earned $98 billion from fossil fuel exports during the first 100 days of its war in Ukraine, with the European Union the main importer, according to new research. The report published Monday (13/6/2022) by the Finland-based Center for Clean Energy and Air Research (CREA) comes as Russian forces continue to make slow but steady progress in their campaign to completely seize the Donbas region in eastern Ukraine. 

The United States and the European Union have sent weapons and cash to help Ukraine fend off Russia's advances, in addition to punishing Moscow with unprecedented economic sanctions. But Kyiv has called on Western countries to cut off all trade with Moscow in the hope of cutting its financial lines after the February 24 invasion. Before the war, Russia supplied 40 percent of EU gas and 27 percent of its imported oil. 

Earlier this month, the bloc agreed to halt most Russian oil imports, and it aims to reduce gas shipments by two-thirds this year. Quoted from Al Jazeera, according to the CREA report, the EU took 61 percent of Russia's fossil fuel exports during the first 100 days of the war, worth about $60 billion. Overall, the main importers were China with $13.2bn, Germany $12.7bn, Italy $8.2bn, Netherlands $8.4bn, Turkey $7bn, Poland $4.6bn, France 4.5bn and India $3.6bn. 

Russia's fossil fuel revenues came first from sales of crude oil ($48.2bn), followed by pipeline gas ($25.1bn), oil products ($13.6bn), liquefied natural gas, or LNG, ($5.3bn) and coal ($4.8bn).
Even as Russian exports plunged in May, with countries and companies avoiding supplies during the war, global increases in fossil fuel prices continued to fill the Kremlin's coffers, with export earnings hitting record highs. Russia's average export price is about 60 percent higher than last year, according to CREA. Several countries have increased their purchases from Russia, including China, India, the United Arab 

Emirates and France, the report added. "India is a significant importer of Russian crude oil, buying 18% of the country's exports," CREA said. CREA added that "a significant share of crude oil is re-exported as refined petroleum products", including to the US and European countries. "As the EU is considering tougher sanctions against Russia, France has increased its imports to become the world's biggest LNG buyer," said CREA analyst Lauri Myllyvirta. Since most of these were spot purchases rather than long-term contracts, France consciously decided to use Russian energy after the invasion, Myllyvirta added. He called for Russia's fossil fuel embargo to "match actions with words".

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