The Energy Revolution Is Europe funding Putin's war? Why sanctions on Russian oil and gas aren't working, with Isaac Levi (CREA)
Sep 9, 2025
Isaac Levi, Head of the Europe and Russia policy team at the Centre for Research on Energy and Clean Air, dives into the complexities of EU sanctions on Russian fossil fuels. He reveals how EU member states have inadvertently funded Russia's war efforts while navigating around sanctions. Discussion includes the shift of oil flows to countries like China and Turkey, the challenges of enforcing sanctions, and how high fossil fuel prices can impact the transition to renewable energy. Isaac also highlights the EU's proactive leadership in tackling these issues.
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Sanctions Are Layered And Carved Out
- EU sanctions are multilayered and include bans on seaborne crude and targeted measures like sanctioning ship captains.
- Levi says sanctions aim to both punish aggression and cut Kremlin energy revenues but include many carve-outs.
Sanctions Cut Revenue, Not Eliminate It
- Sanctions reduced Russian oil export revenue initially by ~20%, but enforcement gaps and adaptation shrank the effect over time.
- Levi concludes sanctions impose costs but have not stopped Russia funding the war.
Focus Enforcement On Ships And Assets
- Strengthen enforcement capacity at member-state level and share successful sanction enforcement lessons across the EU.
- Levi recommends targeting ships and assets which prove more effective than sanctioning opaque trading companies.