Russian oil imports finance Putin’s war

As the world looks on in horror at Putin's invasion of Ukraine, Europe faces its biggest crisis in decades.

The outburst of solidarity and sympathy with Ukraine across much of Europe is heartening.

But actions speak louder than words. The rockets destroying Ukrainian cities were bought with money Putin and his cronies earned selling petrol and diesel to European drivers.

European oil money – oil accounts for 4 out of 5 dollars made on Russian oil and gas exports – has underpinned Putin’s military spending for over two decades.

Ending our fossil fuel addiction, starting with Russian oil, gas and coal is no longer purely a climate objective, it is an urgent moral imperative. Many citizens want to show solidarity with Ukraine by saving energy - this sends a powerful signal - but the primary responsibility and power to act lies with governments.

The European Union and the entire free world are imposing exceptional economic sanctions on Russia. The partial exclusion of Russian banks from the SWIFT system is a major step.

We call on governments to take decisive action to shield households and businesses from the negative impacts of the ongoing and worsening energy crisis. Freezing trade with Russia will have further negative effects. But Putin’s extraordinary military aggression does require an extraordinary response. Inaction would be to condone the destruction of a free and democratic Ukraine and its people.

In solidarity with the Ukrainian people we demand the EU and the UK to take the following actions, at least until Russia has ceased hostilities in Ukraine:

1. To introduce an import tariff on Russian fossil fuel imports into Europe to reduce Russian oil profits ahead of a complete end to Russian fossil fuel imports into Europe, in line with the Paris climate and energy goals. IEA countries have at least 90 days worth of oil import reserves for emergencies. They should be deployed to support countries with high exposure to Russia.
2. Drivers deserve to know whether their petrol station is financing Putin’s war on Ukraine. We therefore demand oil companies, fuel retailers and petrol stations disclose what share of petrol and diesel sold originates from Russia. We ask governments to introduce rules to ensure fuel retailers provide this information.
3. To urgently adopt an action plan to reduce oil consumption in the short term, as simply shifting from Russian oil to e.g. Middle Eastern oil is not a solution, not for the climate, not for human rights, and not for energy security. Potential transport measures include maintaining high shares of homeworking and virtual collaboration to avoid unnecessary car and air travel, speed reductions, eco-driving, driving restrictions, promotion of walking, cycling and public transport and the organisation of car-free weekends in cities. All of this will reduce reliance on imported oil, and reduce the upward pressure on oil prices.
4. To set a new goal of achieving 50% battery electric car and van sales by 2025. The EU and UK CO2 standards should be brought forward to help achieve this goal.
5. Special targets should be set to electrify high mileage vehicles such as company cars, fleets, taxis, and buses as replacing them with electric drive would have the largest near term oil demand impact.
6. Measures to radically and immediately accelerate the build out of wind and solar power and to accelerate energy efficiency measures, in particular renovation of buildings, which also tackles energy poverty.
7. The EU and its member states should double investment in energy saving and climate friendly investments as part of the 723 billion euro EU Recovery and Resilience funds.
8. The Commission should immediately withdraw its proposal to label gas as “green” in the European Sustainable Finance Taxonomy. The EU should also cancel its plans to shift shipping to LNG as this would increase our dependence on gas imports.
9. Facing major supply uncertainties about food and feed crop supplies from two of the EU's main suppliers, Russia and the Ukraine, the EU and its member states must immediately suspend the use of food and feed crops in biofuels to ensure food security and to avoid massive food price inflation in Europe and beyond.

We understand these actions will have a real impact on people. We therefore call on governments to introduce appropriate measures to shield low and middle income families from the impacts of the energy crisis and ensure access to sustainable mobility for all.

However, faced with the biggest crisis in Europe since 1945 and an unprecedented threat to peace, freedom and democracy, it is clear the cost of inaction far outweighs what now needs to be done.