This year, Western countries have purchased $2 billion in Russian oil despite sanctions.
The Kremlin has received an estimated $834M in tax revenues from oil produced by three Turkish refineries.
Through Turkey, western countries bought $2 billion worth of Russian oil, highlighting the weaknesses in the current sanctions system.
Turkish refineries have seen an increase in profitability due to the recent arrival of crude oil, which is used to produce gasoline, diesel, and other products for export to other countries.
Nearly all Russian imports were banned by the U.S., EU, and their Western allies at the onset of the Ukraine war. However, countries can still purchase Russian fuel if it has been first processed in another country.
According to a report from the Center for the Study of Democracy and the Center for Research on Energy and Clean Air, the Kremlin has earned an estimated $834 million in tax revenues from oil produced by three Turkish refineries.
Sanctioning countries of Turkish oil products made from Russian crude would allow Russia to recruit over 6,200 soldiers every month through the tax revenue received from imports.
In 2023, the Russian oil and gas industry was a significant source of income for the Kremlin, accounting for 32% of its federal budget.
The report states that Turkey and its Western buyers are increasingly exploiting a loophole that Ukrainians have pleaded nations to close.
In the first half of 2024, the EU, U.S., U.K., and other Western allies bought approximately $2 billion of Russian oil from three Turkish facilities.
The Turkish companies can purchase oil from Moscow at a discount of between $5 and $20 per barrel, which is more affordable than what they would obtain from the Middle East.
In 2024, the average monthly imports from the Turkish refinery increased by 335% compared to the previous year in the United States.
Lukoil, a U.S.-sanctioned Russian energy giant, provides 73% of Star Aegean's 98% dependence on Russian crude, according to a report.
The majority of the refinery's barrels are exported to Western countries supporting Ukraine.
The report recommended that Western countries prohibit the import of crude oil and products from refineries owned by Russia, Lukoil.
India significantly contributes to Russia's war funds through the purchase of $37 billion in crude oil last year, which was then exported to the U.S. as oil products worth $1 billion.
In 2023, a Greek refinery that imports Russian oil received nearly $1 billion from the Department of Defense.
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