US energy security envoy Amos Hochstein told lawmakers on Thursday that Russia may be generating more revenue from fossil fuels now than before it invades Ukraine, as global price increases offset the impact of the west’s efforts to curb sales.
“I can’t deny that,” Hochstein told the Senate Subcommittee on European and Regional Security Cooperation, in response to a question about whether Moscow is making more money from crude oil and gas sales now than a few months before the war started.
The United States and the European Union agreed to ban the import of Russian oil and imposed increased sanctions to punish the country for its invasion of Ukraine.
These moves have halted global trade in Russian fossil fuels, while also causing a spike in global oil and gas prices. On Thursday, Brent oil prices were near a three-month high at over $123 a barrel. Read more
Hochstein said the increase in global oil demand from consumers resulting from the COVID-19 pandemic was “far larger, stronger than anyone had anticipated.”