Europe Loses $1 Trillion From Ditching Russian Oil

Europe is on the losing side of ditching Russian crude oil due to US sanctions. The European Union (EU) stopped procuring oil from Russia after the White House imposed sanctions in February 2022. The sanctions came after Russia invaded and waged war against its neighboring country, Ukraine. President Volodymyr Zelenskyy has since then received funds worth millions, including arms and ammunition.

The Putin administration claims that Europe has lost over 1 trillion euros ($1.16 trillion) by terminating Russian oil. Trade between the European Union and Russia has significantly declined over the past three years. In 2013, crude oil transactions between the EU and Russia stood at $482 billion. In 2025, the trade between the two regions will have been practically zero.

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$1 Trillion in Losses for Europe for Not Buying Russian Oil, Claims Official

Alexander Grushko, Russian Deputy Foreign Minister, said to Tass that Europe is on the losing side of the oil wars. “There are different estimates. If we talk about the majority of experts, the total amounts to as much as more than a trillion euros, taking into account losses from termination of energy cooperation with Russia, from the curtailment of trade,” he said.

Grushko added that Europe is buying Russian oil through other countries, which is 4-5 times higher in value. He also stated that electricity across the European Union has become 2-3 times more expensive. “This is the price that Europe has to pay for curtailing all economic contacts with Russia,” he said.

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In 2023, Saudi Arabia laundered Russian oil to Europe at a premium price. The Kingdom of Saudi Arabia procured oil at discounted rates from Russia and sold it in the European Union. The EU paid more money per barrel for the energy deal, making the transaction expensive. Developing countries such as India, China, Iran, Brazil, South Africa, and Ethiopia, among others, are still buying oil from Russia despite the US sanctions.