Russia’s income from oil and gas exports has fallen over the past year, even as the country increased its oil export volumes, highlighting the growing impact of Western sanctions.

Data released on the fourth anniversary of Moscow’s full-scale invasion of Ukraine showed total revenues from oil, gas, coal and refined products stood at €193 billion in the 12 months to February 2026 a 27% decline compared with pre-invasion levels, according to the Centre for Research on Energy and Clean Air.

Sanctions Force Discounted Sales

While sanctions have sharply reduced Russia’s gas exports since 2022, oil shipments have remained resilient. However, Moscow has been forced to sell crude at discounted prices to maintain volumes.

Revenues from crude exports fell 18% year-on-year, even as export volumes rose 6% above pre-invasion levels to 215 million tonnes.

This divergence underscores how sanctions are reshaping, rather than halting, Russia’s energy trade.

Shift to Asian Markets

In response to Western restrictions, Russia has redirected most of its seaborne crude to buyers such as India, China and Turkey.

Much of this trade relies on a so-called “shadow fleet” of ageing and often uninsured tankers, allowing shipments to bypass sanctions and price caps imposed by G7 countries.

Further Pressure Ahead

New measures under discussion could tighten the squeeze on Russia’s energy sector. The United States has linked trade talks with India to reducing reliance on Russian oil, while the European Union is considering broader restrictions targeting shipping and support services.

Although an EU proposal was recently blocked, such steps could disrupt Russia’s ability to use Western shipping networks a key channel for exports to Asia.

The evolving sanctions regime suggests that while Russia has adapted to earlier restrictions, sustaining energy revenues may become increasingly difficult in the months ahead.

(with inputs from Reuters)