As the U.S. and Israel began actions against Iran in late February, Russia has reaped substantial revenue from fossil fuel sales. Recent data shows that, benefiting from soaring energy prices, Russia's export income has significantly increased, prompting Washington to ease some sanctions on Russian oil.
Russian Fuel Revenue Grows Amid Wartime Context
Following the outbreak of the U.S.-Iran conflict and the disruption of oil transport in the Strait of Hormuz, Russia saw a surge in its fuel export revenue in the initial two weeks. According to Euronews, from March 1 to 15, Moscow's daily revenue from oil exports reached approximately €372 million, a 14% increase compared to the daily average in February.
Data from the Centre for Research on Energy and Clean Air (CREA) indicates that during this period, Russia earned about €7.7 billion (over $8.9 billion) from exports of fossil fuels such as oil, natural gas, and coal. The nonprofit think tank's data suggests this amounts to approximately €513 million per day, up from the previous month's daily average of €472 million.
Since Iran faced joint airstrikes on February 28, global oil prices have surged, with Brent crude nearing $120 per barrel. Meanwhile, Iran has continued to launch attacks on oil and gas facilities in Arab countries in response to Israeli bombings of its South Pars gas field in the Gulf region.
U.S. Issues New Exemptions for Russian Oil
In addition to the direct benefits from rising energy prices, Moscow is also seizing another favorable opportunity to escape isolation. The U.S. Treasury Department has issued a new licensing regulation allowing the trading of Russian crude oil and petroleum products loaded onto tankers on or before March 12.
Reuters notes that while the terms of this exemption are nearly identical to previous licenses, the new document explicitly excludes transactions involving North Korea, Cuba, and the annexed Crimea.
U.S. Treasury Secretary Scott Bessent emphasized that this “short-term” measure is “narrowly tailored” and stated that it would not provide significant economic benefits to Moscow, as it only pertains to oil already in transit.
Europe's Determination to Maintain Sanctions on Russia
This U.S. action has heightened tensions among transatlantic allies, as the EU remains steadfast in maintaining its escalating energy restrictions on Russia since the invasion of Ukraine.
According to Euronews, European leaders, including European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, and French President Emmanuel Macron, have all called for continued sanctions against Moscow. Despite the Middle East conflict limiting oil supplies from the Persian Gulf, the EU is still working towards a complete phase-out of Russian energy imports, although facing some opposition.