Sanctions Have Cost Russia €450 Billion, While Oil Prices Have Fallen to a Five-Year Low

The Russian Federation has lost approximately €450 billion in revenue due to international sanctions. This amount is 2-3 times greater than the country’s defense budget. This was stated by the EU’s sanctions policy chief, David O’Sullivan, during a seminar at the European Parliament.

This is reported by AgroReview

Price Caps and Continued Pressure on the Russian Energy Sector

David O’Sullivan noted that the Russian economy is in a difficult position. The official emphasized the need to maintain and strengthen the sanctions pressure on Russia.

“Therefore, we need to sustain this pressure, and we currently have a price cap on oil at $46.7,” he said, adding that this cap could 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 revenue for Russia as much as possible,” O’Sullivan noted.

Decline in Oil Revenues and Record Discounts on Urals

According to Vladyslav Vlasyuk, the President of Ukraine’s Commissioner for Sanctions Policy, in November and December of last year, Russia’s oil export revenues fell to $11 billion and $10 billion respectively — the lowest level since the beginning of the full-scale war. In comparison, Russia previously received at least $13 billion monthly from oil sales.

According to official statistics from the Ministry of Economic Development of Russia, in December 2025, the average price of Russian Urals oil dropped to $39.18 per barrel. This is 13% lower than in November ($44.87) and 41% lower than in January of the same year ($67.66).

Following the imposition of U.S. sanctions against Russian oil companies “Rosneft” and “Lukoil,” discounts on Urals reached record levels since the start of the major war: $28 per barrel at Baltic Sea ports and $26 at Black Sea ports. As a result, the average price of Russian oil has fallen to its lowest mark since May 2020 — $31.03 per barrel. Currently, the price of Urals is nearly $20 lower than what is projected in Russia’s budget for 2026 ($59 per barrel).