Ukrainian Climate Group Seeks Tougher Energy Sanctions on Russia

Ramping up international sanctions on Russia’s still-powerful fossil fuel industry would help lower global greenhouse gas emissions and restrict the country’s main source of revenue in waging war against Ukraine, an analysis from a Ukrainian climate advocacy group found.

The organization, Razom We Stand, calls for replacing Russian oil and gas with renewable energy sources in Europe and Asia, which, along with stronger sanctions on Russia, the group estimated could reduce carbon emissions by the equivalent of 300 million tons a year by 2030.

Sanctions so far imposed by the US and European Union since the start of the Ukraine war in 2022 have had a limited effect on weakening Russia’s oil and gas industry; lower prices have enabled Russia to explore other markets for their commodities, including China and India. Oil and gas account for nearly 30% of Russia’s gross domestic product and 50% of its federal revenue, according to the analysis.

The report, obtained exclusively by Bloomberg Government, comes as the world gathers Nov. 11-22 in Azerbaijan for COP29, the annual high-profile UN climate summit. It also arrives at a crucial time for US liquefied natural gas exports, the main LNG supplier to Europe in 2022 and 2023. The Biden administration, which imposed a pause on new LNG applications in January, is expected to report on the economic and environmental impacts of LNG exports before leaving office early next year. President-elect Donald Trump’s talk about increasing tariffs on all kinds of imports could affect the US LNG market abroad.

“Despite international sanctions, Russia’s fossil fuel industry remains resilient, leveraging its massive pipeline network, Arctic gas facilities, and emerging Asian markets to offset some lost European revenue,” the report said. “These activities come at an enormous climate cost.”

But Razom We Stand isn’t arguing for more oil and gas from other places with a stronger environmental track record, like the US. The climate group would like to see renewable energy become the dominant source of energy in the Ukraine and elsewhere—a tough sell as much of the world and many countries’ economies continue to rely on fossil fuels. Trump, as well as many lawmakers, count oil and gas executives as valuable political donors, and the president-elect has promised to “drill, baby, drill” once he’s back in office.

American politicians should stop pushing fossil fuel interests under the guise of helping Ukraine, said Svitlana Romanko, founder and executive director of Razom We Stand.

“Don’t use us as an excuse for your political motives or for building some misleading narratives that are just extending our overall addiction to fossil fuels and exacerbating the climate chaos,” she said in an interview before the Nov. 5 election in the US.

Romanko’s group also found that the lack of credible data from Russia’s oil and gas industry as well as the absence of independent environmental oversight of the sector or government further complicates emissions monitoring.

“In practice, the Russian government is not making any meaningful efforts to combat climate change; on the contrary, it is actively pursuing the development of fossil fuel reserves in the Arctic,” the report stated.