Regan Brown
Russia is a leading global exporter of oil and natural gas, with the largest proven gas reserves, the second-largest coal reserves, and the eighth-largest oil reserves. In 2021, Russia was the world's largest exporter of fossil fuels, and roughly 60% of its electricity is generated by fossil fuels. Russia's fossil fuel exports are a significant source of revenue, with oil and gas-related taxes and export tariffs accounting for 45% of its federal budget in January 2022. However, following the Russian invasion of Ukraine in 2022, many countries, including EU nations and the UK, have imposed sanctions and reduced their imports of Russian fossil fuels, leading to a decline in Russia's export revenues.
| Characteristics | Values |
|---|---|
| Russia's rank in fossil fuel exports globally in 2021 | 1st |
| Russia's rank in natural gas reserves globally | 1st |
| Russia's rank in coal reserves globally | 2nd |
| Russia's rank in oil reserves globally | 8th |
| Russia's rank in oil shale reserves in Europe | 1st |
| Russia's energy consumption in 2020 | 7,863 TWh |
| Russia's rank in CO2 emissions per capita in 2020 | 4th |
| Russia's fossil fuel exports revenue since the invasion of Ukraine | €158 billion |
| Russia's fossil fuel exports revenue in June 2025 | €593 million per day |
| Russia's federal budget from oil- and gas-related taxes and export tariffs in January 2022 | 45% |
| Russia's electricity generation from fossil fuels | 60% |
| Russia's electricity exports | CIS countries, Estonia, Latvia, Lithuania, China, Poland, Turkey, and Finland |
| Russia's refining capacity | 6.9 million bpd |
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What You'll Learn
Russia's fossil fuel exports
Russia is a leading global exporter of oil and natural gas, with the largest proven gas reserves, the second-largest coal reserves, the eighth-largest oil reserves, and the largest oil shale reserves in Europe. In 2021, the country produced 762 bcm of natural gas, exporting approximately 210 bcm via pipeline, and is the world's largest gas exporter. In 2021, Russia exported 750,000 bpd of diesel to Europe, meeting 10% of demand.
Russia relies heavily on revenues from oil- and gas-related taxes and export tariffs, which accounted for 45% of its federal budget in January 2022. However, after the invasion of Ukraine, many countries, including those in the EU, sanctioned Russian fossil fuels and reduced their imports. This caused Russia's fossil fuel export revenues to fall by 10% (EUR 70 million per day) in January 2024 compared to the previous month, with revenues continuing to fall steadily since September 2023.
Despite the sanctions, the EU remained the largest importer of Russian fossil fuels as of January 2024, purchasing 50% of Russia's LNG exports, 39% of its pipeline gas, and 13% of its oil products. China was the second-largest importer, accounting for 21% of LNG exports, 26% of pipeline gas, and 12% of oil products. Turkey was the largest buyer of oil products, purchasing 24%, and was also the largest buyer of LPG, purchasing 55%.
Russia has increasingly focused on the Arctic as a way to increase oil and gas production, with the Arctic accounting for over 80% of Russia's natural gas production and an estimated 20% of its crude production. Russia intends to exploit fossil fuels in the Arctic for the Asian market, taking advantage of the region's increasing accessibility due to climate change.
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Russia's energy strategy
Russia has long been an energy superpower, with the country's energy strategy playing a significant role in its economy and foreign policy. The country has vast natural resources, including the world's largest natural gas reserves, the second-largest coal reserves, and the eighth-largest oil reserves.
The concept of a national energy policy was approved by the Russian government in 1992, and the first post-Soviet energy strategy was outlined in a presidential decree in 1995. The Energy Strategy of Russia to 2030, approved in 2009 and published in 2010, aims to maximise the effective use of natural energy resources to sustain economic growth, improve quality of life, and strengthen Russia's foreign economic position. The strategy includes increasing energy efficiency, reducing environmental impact, and improving the competitiveness of Russian energy production in the world market.
However, Russia's invasion of Ukraine in 2022 led to sanctions and a reduction in fossil fuel imports by EU countries, causing Russia to reorient exports towards Asia. This resulted in a loss of 75% of Russia's export market in 2022. Despite this, Russia continues to develop its energy infrastructure, particularly in eastern Siberia and the Far East, and aims to modernise its energy sector while decreasing its economic dependency on fossil fuels by 2030.
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Fossil fuel imports to the UK
Russia is a leading global exporter of oil and natural gas and has the largest proven gas reserves in the world. It also has the second-largest coal reserves and the eighth-largest oil reserves. Russia has long relied heavily on revenues from oil- and gas-related taxes and export tariffs, which accounted for 45% of its federal budget in January 2022. However, following its invasion of Ukraine, the EU sanctioned Russian fossil fuels and reduced imports, causing Russia to reorient exports towards Asia.
In 2021, the UK imported 4% of its gas, 9% of its oil, and 27% of its coal from Russia, worth a combined £4.5 billion. In 2022, this fell to £2.2 billion, and in the year to January 2023, it was £1.3 billion. In January 2023, the UK imported no coal, oil, or gas from Russia, the eleventh month in a row with no Russian gas imports. The UK government had committed to ending imports of oil and coal from Russia by the end of 2022 and gas from Russia as soon as possible thereafter, with a ban on Russian gas starting on 1 January 2023.
The UK's exposure to volatile global gas prices underscores the importance of transitioning to cheap, clean, renewable energy and nuclear power to reduce reliance on expensive fossil fuels. The UK has invested £90 billion in renewable energy since 2012 and has one of the most reliable and diverse energy systems in the world. The UK is also a significant producer of crude oil and petroleum products and holds oil stocks to ensure resilience in the event of a major global supply disruption.
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Fossil fuel imports to the EU
Russia is a leading global exporter of oil and natural gas and has the largest known natural gas reserves of any state on Earth. It also has the second-largest coal reserves and the eighth-largest oil reserves. In 2020, imports from Russia made up 39% of the gas used in the EU, 23% of oil imports, and 46% of coal imports.
Following Russia's invasion of Ukraine, EU countries sanctioned Russian fossil fuels and reduced their imports. In the third year of the invasion, EU imports of Russian fossil fuels totalled EUR 21.9 billion, a 6% year-on-year drop in value but only a 1% year-on-year drop in volume. This was despite a range of sanctions and the threat of dependence on Russian energy. The EU's Russian imports in the third year of the invasion even surpassed the EUR 18.7 billion of financial aid sent to Ukraine.
Russia has increasingly focused on the Arctic as a way to increase oil and gas production. The Arctic accounts for over 80% of Russia's natural gas production and an estimated 20% of its crude production. Russia has also been using ''shadow' tankers to transport oil to new markets, enabling it to bypass the oil price cap. In the first six months of the war, Russia exported €158 billion in fossil fuels, €85 billion of which went to the EU.
The UK has also introduced full or partial bans on Russian coal and oil. The UK banned imports of Russian gas from the start of 2023. In the year leading up to January 2023, the UK imported no coal, oil, or gas from Russia. In 2021, imports of gas, oil, and coal from Russia to the UK were worth a combined £4.5 billion, falling to £2.2 billion in 2022 and £1.3 billion in the year to January 2023.
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Russia's fossil fuel revenues
Russia is a leading global exporter of oil and natural gas. It has the largest proven natural gas reserves in the world, the second-largest coal reserves, the eighth-largest oil reserves, and the largest oil shale reserves in Europe. In January 2022, revenues from oil- and gas-related taxes and export tariffs accounted for 45% of Russia's federal budget.
Despite the sanctions, the EU remains the largest importer of Russian fossil fuels, followed closely by China. In the first six months of the war in Ukraine, Russia exported €158 billion in fossil fuels, €85 billion of which went to the EU. Russia's largest portion of revenue from fossil fuel exports since the war came from sales of oil, at approximately €472 billion as of June 18, 2024. Fossil gas exports brought the second-largest revenue, at around €145 billion. In total, Russia's revenue from fossil fuel exports from February 24, 2022, to June 18, 2024, amounted to roughly €689 billion.
Russia's fossil fuel export revenues saw a 4% month-on-month rise to €593 million per day in June 2025. However, Russia's fossil fuel revenues in the second quarter of 2025 dropped by 18% year-on-year, the lowest since the invasion of Ukraine. Lowering the oil price cap and increasing the monitoring and enforcement of sanctions are suggested methods to further limit Russia's fossil fuel export earnings.
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Frequently asked questions
Yes, Russia uses fossil fuels. In fact, roughly 60% of Russia's electricity is generated by fossil fuels.
Yes, Russia was the world's largest exporter of fossil fuels in 2021. It is a leading global exporter of oil and natural gas.
In 2021, the UK imported 4% of its gas, 9% of oil, and 27% of coal from Russia. In the same year, the EU imported 39% of its gas, 23% of oil, and 46% of coal from Russia. As of June 2025, the largest EU importers of Russian fossil fuels are Hungary, Belgium, France, and Slovakia.
