Europe's energy payments bolster Russia's wartime economy
This year, Russia is set to earn 233 billion euros (364 billion Canadian dollars) from the sale of energy and raw materials. The European Union alone will contribute 20 billion euros (31 billion Canadian dollars) to Putin's war economy. Moscow will use this money to finance new tanks, kamikaze drones, and artillery shells.
Russia relies on revenue from the sale of oil, gas, uranium, and coal to finance its war economy. The energy sector remains a crucial source of income for Russia. In 2024, revenues from hydrocarbon exports accounted for 30% of its budget.
As reported by the German newspaper "Bild," Russia will earn 233 billion euros (364 billion Canadian dollars) this year from the export of energy and raw materials. Out of this, over 20 billion euros (31 billion Canadian dollars) will be contributed to Putin's war economy by Europeans themselves, according to data from the Bruegel Institute.
This amount is significantly higher than what the EU allocates for military support to Ukraine. According to 2024 figures, military aid totalled 6 billion euros (9 billion Canadian dollars) from the European Peace Facility (EPF), designated for the supply of arms, ammunition, and training of Ukrainian armed forces. Additionally, over 1.9 billion euros (3 billion Canadian dollars) were allocated for the delivery of one million rounds of artillery ammunition.
However, military aid is just part of the broader support, which also includes substantial financial assistance. The EU provides 18.1 billion euros (28.3 billion Canadian dollars) to support Ukraine's budget, covering expenses like salaries, pensions, and infrastructure reconstruction, along with 12.5 billion euros (19.5 billion Canadian dollars) from the Instrument for Ukraine for long-term rebuilding and reforms aimed at bringing Ukraine closer to EU membership. Additionally, there's 18 billion euros (28 billion Canadian dollars) for humanitarian aid and energy infrastructure reconstruction. The total amount of aid to Ukraine in 2024 amounted to approximately 38.3 billion euros (59.8 billion Canadian dollars).
The significant effort Europe is making to support war-torn Ukraine is gradually counteracted by the bill Russia presents to the Union for imported energy resources.
The world fills Putin's coffers
Although Russia faces numerous sanctions, it still garners significant revenue from hydrocarbon exports. As "Bild" notes, only in February 2025, other countries paid Vladimir Putin's regime 640 million euros (1 billion Canadian dollars) for gas, oil, liquefied natural gas, coal, and uranium.
The largest importers of Russian raw materials are three countries: China, India, and Turkey, which is part of NATO. Together, these countries accounted for about two-thirds of Russian energy exports.
According to "Bild," thanks to uninterrupted revenue from raw materials, Russians are able to build approximately 80 new tanks each year, renewing more than 300 annually. Additionally, this year, Russia will produce over 150,000 long-range kamikaze drones and about half a million fibre-optic kamikaze drones.
The German newspaper suggests that without secondary sanctions targeting countries importing energy resources from Russia, Putin's coffers will continue to be filled with new funds that the regime will use to fuel its war machine.
