World still clinging to Russian energy despite sanctions: Time
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A report published in Time magazine highlights that Russia's energy dominance has allowed it to maintain a strong economy despite Western sanctions.
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A Russian oil cargo carrying discounted crude, is anchored at a port in Karachi, Pakistan, Tuesday, June 13, 2023. (AP)
Time published Sunday an analysis detailing the failure of Western sanctions to fully sever Europe's reliance on Russian energy, despite over two years of war in Ukraine.
The report highlights how initial efforts by the US, UK, and the EU to isolate the Kremlin and wean Europe off Russian oil and gas have faltered.
While energy imports from Russia have declined significantly since February 2022, loopholes and incomplete embargoes have allowed Russian energy revenues to remain robust.
According to the analysis, Russia's energy dominance has allowed it to maintain a strong economy despite sanctions.
In 2024, Russia's GDP is expected to grow by over 4%, and defense spending accounts for 40% of public expenditure as Moscow bolsters its military operations.
Despite the EU's push for an energy transition to renewables, the reliance on Russian liquified natural gas (LNG) has actually increased, with Austria cited as a prominent example of continued dependence.
Read more: Sanctions on Russia did more harm to EU economy: Russian billionaire
Sanctions on Russia: ineffective
Time also pointed to violations of Western sanctions, with "shadow fleet" oil tankers carrying Russian oil into European ports.
Greenpeace has reported several such instances, revealing how Russia continues to profit from energy exports, despite embargoes.
Since the war in Ukraine began, Europe has paid Russia over €196 billion for oil, gas, and coal, money that has kept the Kremlin's operations working.
The failure to fully cut off Russian energy has not only sustained Russia's economy but has also weakened global US influence, the analysis notes.
Environmental setbacks
The analysis also raises environmental concerns. Europe's scramble to replace Russian fossil fuels has led some countries, like Germany, to increase coal production, a significant setback for climate goals.
Meanwhile, countries like China, India, and Turkey, beneficiaries of cheap Russian energy, have slowed their own transitions to renewables, further exacerbating the global energy crisis.
Time concludes that while there is still time to fully isolate Russia from global energy markets, the lack of political will in the West makes it an unlikely prospect.
Read more: Russia's fleet expands in defiance of Western sanctions
