The Russian Federation has suffered significant economic losses due to international sanctions, which have resulted in a shortfall of approximately €450 billion in revenue. This amount exceeds the country’s defense budget by 2-3 times, significantly weakening Russia’s financial capabilities. This was stated by the European Union’s Commissioner for Sanctions Policy, David O’Sullivan, during a seminar in the European Parliament.
This is reported by Finway
Sanction Pressure and Falling Oil Prices
According to David O’Sullivan, the Russian economy is in a critical situation precisely because of the pressure from sanctions.
“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 could be reviewed downwards 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 Russia as much as possible,” O’Sullivan noted.
Significant Decline in Oil Export Revenues
The President of Ukraine’s Commissioner for Sanctions Policy, Vladislav Vasyuk, reported that in November and December of last year, Russia’s revenues from oil exports fell to their lowest level since the onset of the full-scale war – $11 billion and $10 billion respectively, while previously these revenues were at least $13 billion per month. According to the Ministry of Economic Development of Russia, the average price of Urals oil in December 2025 dropped to $39.18 per barrel. This is 13% lower compared to November ($44.87) and 41% lower than at the beginning of 2025 ($67.66 in January).
The restrictions imposed by the United States against Russian energy companies, including Rosneft and Lukoil, have led to record discounts on Urals oil: in the ports of the Baltic Sea, the difference from the Brent price reached $28 per barrel, while in the Black Sea ports, it was $26. Thus, the average cost of Russian oil has fallen to its lowest level since May 2020 ($31.03). As of January 2026, the price of Russian oil remains nearly $20 lower than the budgeted price set by Russia for this year ($59 per barrel).