Recent reports have shed light on a concerning trend where Western nations indirectly purchased $2 billion worth of Russian oil through Turkey, exploiting loopholes in existing sanctions. Despite the U.S., European Union, and their allies imposing strict bans on Russian imports following the conflict in Ukraine, a significant amount of Russian fuel is still making its way to the global market after being processed in Turkey.
According to findings from the Center for the Study of Democracy and the Center for Research on Energy and Clean Air, crude oil reaching Turkish refineries is being used to produce gasoline, diesel, and other products for export. This practice has proven to be highly profitable, with the oil from three Turkish refineries reportedly generating an estimated $834 million in tax revenues for the Kremlin.
The revenue from these oil imports could potentially fund the recruitment of thousands of soldiers for Russia each month, highlighting the financial significance of the oil and gas sector to the Kremlin. In fact, this sector contributed 32% of Russia's federal budget in 2023.
Despite calls from Ukrainians to close this loophole, Western buyers, including the EU, U.S., and U.K., have continued to purchase Russian oil from Turkish facilities. Moscow has incentivized these transactions by offering discounts to Turkish companies, making Russian oil a more attractive option compared to sources from the Middle East.
One notable company, Star Aegean, which is predominantly reliant on Russian crude, has a significant portion of its supplies sourced from the U.S.-sanctioned Russian energy giant Lukoil. However, the majority of the refinery's output is destined for Western nations supporting Ukraine.
The report urges Western countries to prohibit imports from refineries using Russian crude oil and products originating from Russian-owned companies like Lukoil. It also highlights India's substantial contribution to Russia's oil revenue, with record purchases of $37 billion in crude oil last year, a portion of which was exported to the U.S. as oil products worth $1 billion.
Furthermore, the Department of Defense awarded nearly $1 billion to a Greek refinery that imports Russian oil in 2023, further illustrating the complex web of transactions that continue to support Russia's war efforts.
