The economy of the Russian Federation has suffered significant losses due to sanctions imposed by the international community. According to estimates by the European Union’s sanctions policy chief, David O’Sullivan, revenue losses have already exceeded Russia’s defense budget by three to four times, amounting to approximately €450 billion.
This is reported by Business • Media
Decline in Oil Export Revenues
The situation in the Russian energy sector remains extremely tense. The Ukrainian President’s representative for sanctions policy, Vladislav Vasyuk, reported that Russia’s oil export revenues in November and December of last year fell to the lowest levels since the beginning of the war — $11 billion and $10 billion, respectively. In comparison, earlier monthly profits from oil sales exceeded $13 billion.
According to information provided by the Russian Ministry of Economic Development, the average price of Urals oil in December 2025 fell to $39.18 per barrel, which is 13% lower than in November ($44.87) and 41% lower than at the beginning of the year ($67.66 in January).
Record Discounts and Future Prospects
As a result of U.S. sanctions against major Russian oil companies, including Rosneft and Lukoil, discounts on Urals oil reached record levels during the full-scale war: $28 per barrel below the Brent price at Baltic ports and $26 at Black Sea ports. Consequently, the average price of Russian oil has dropped to its lowest level since May 2020, standing at $31.03 per barrel. The current price remains nearly $20 lower than the level projected in Russia’s budget for 2026 ($59 per barrel).
“Therefore, we need to maintain this pressure, and we currently have a price cap on oil at $46.7,” he said, adding that this cap may be reviewed downward in the coming weeks. “There is even talk of the possibility of implementing more radical measures, such as a complete ban on maritime transport, to try to suppress any further revenues for the Russian Federation,” O’Sullivan noted.
Thus, the sanctions policy significantly impacts Russia’s financial stability, limiting its ability to finance military expenditures and restraining revenues from its primary export resource — oil.