21 February 2024
Open letter to:
Justin Trudeau, Prime Minister of Canada
Emmanuel Macron, President of the Republic of France
Olaf Scholz, Chancellor of the Federal Republic of Germany
Giorgia Meloni, Prime Minister of Italy
Fumio Kishida, Prime Minister of Japan
Rishi Sunak, Prime Minister of the United Kingdom
Joe Biden, President of the United States of America
Ursula von der Leyen, President of the European Commission
Charles Michel, President of the European Council
Roberta Metsola, President of the European Parliament
Civil society appeal to EU and G7: Plug energy sanctions loopholes and strengthen enforcement to end the war
Dear G7 and European Union leaders,
The European Union and G7 should tighten their grip on Russia’s key revenue streams from exports of fossil fuels, ban Russian LNG gas imports and close all loopholes in existing sanctions. It is good that Europe supports Ukraine financially and militarily. But it is just as important to fully end the financing of the Russian war machine through fossil fuel imports, which is still a reality, say more than 300 European, international and Ukrainian NGOs in a public appeal to leaders.
Sanctioning countries have significantly reduced their reliance on Russian fossil fuels, but more must be done to stop purchasing fuels that finance the Kremlin’s war chest. Through measures such as the EU oil import ban and G7 price cap, Russia’s export earnings from oil have been cut by 14%, costing them EUR 34 billion. However, the oil price cap’s impact is far short of what could have been achieved with greater monitoring and enforcement of the policy, paired with a lower price level. Two years on, the EU and G7 have purchased EUR 202 bln of fossil fuels from Russia since Putin’s full-scale invasion of Ukraine.
Russia’s war as an onslaught on international rules-based order, democracy and human rights. We welcome the recent decision by the European Council to support Ukraine with EUR 50 billion in aid. However, the EU’s recent aid commitment represents 27% of their total fossil fuel imports purchased from Russia since the beginning of their full-scale invasion, estimated at over EUR 185 billion. More needs to be done to support our allies and wean the EU off of the Russian fossil fuel exports that fund the war, including a complete phase-out of Russian pipeline gas.
The EU has introduced 12 consecutive sanctions packages on the Russian economy, designed to deprive the aggressor of access to finance, insurance, advanced technologies, and engineering services and to limit its export earnings. The EU and G7 have also adopted a globally applicable price cap on Russian oil in December 2022. Yet, insufficient enforcement and the lack of comprehensive sanctions against Russia’s fossil fuel exports are downgrading the efficiency of the sanctions regime and undermining the overall efforts to deprive Russia of economic means for waging war.
Russia’s 2024 federal budget increases to the military-industrial complex doubled compared to 2022, unprecedented military spending since Soviet times. The major shift sends a third of all governmental funding to the army, threatening regional stability and the future of democracy and security in Europe. Meanwhile, Russia expects to replenish its budget with 11.5 trillion rubles (USD 127 billion) from oil and gas sector revenues. Russia can spend so lavishly on its military mainly because of its oil and gas revenues.
The EU and G7 countries contribute to this expanding war chest by inadequately enforcing sanctions against Russian oil and gas and leaving loopholes wide open that Russia exploits daily.
In solidarity with the Ukrainian people, the demand the G7 and EU take the following actions:
Fully enforce and lower price caps on Russian crude oil and oil products and introduce transparent and verifiable compliance mechanisms for oil traders and shippers, especially those who operate European-owned and P&I (Protection & Indemnity) insured tankers that export Russian oil. The price cap on Russian crude oil should be set much closer to its production cost (averaging USD 15 per barrel), at USD 30 per barrel, which would have slashed Russia’s revenue by EUR 37 bn (25%).
Prevent Russia from further expanding the shadow fleet of dangerous, practically uninsured and unaccountable old tankers, operating through illegal and dubious management arrangements and lacking transparency in ownership. This is necessary not only to reduce Russia’s ability to finance the war of aggression with oil money but also to prevent looming environmental catastrophes from possible major oil spills. The EU and G7 should introduce a spill insurance verification programme for vessels that travel through their waters. This could exclude ‘shadow’ tankers without spill insurance from travelling through their most travelled route from Baltic ports whilst reducing the risk of environmental catastrophe. If this policy banned many ‘shadow’ tankers from transporting oil from the Baltic and Black Sea ports, it could increase Russia’s reliance on legally insured vessels and enhance the leverage of the oil price cap policy.
Close the “refining loophole”, which allows EU and G7 countries to import oil products — mainly diesel, jet fuel and gasoline — produced from Russian oil at refineries in third countries like India, Turkey or UAE. The “refining loophole” legally allows Russian oil to be processed and flow into the EU and G7 countries, preserving Russian export volumes and earnings.
Fully ban liquefied natural gas (LNG) imports from Russia and its transhipment in European ports for exports to other countries. In 2022-2023, the exports of Russian LNG to global markets were expanding, while the opposite is required to cut the Kremlin’s budgetary income that funds the war of aggression and avoid the severe climate impacts of uncontrolled and unaccounted methane emissions in the Russian LNG supply chain. The EU should keep true to the commitments under the REpowerEU plan and also fully ban Russian pipeline gas imports.
Take decisive actions to reduce oil and gas consumption and end import dependency to deflate the Russian war economy. Such actions include requiring company car fleets in Europe to shift to all-electric vehicles, which would help minimise petroleum demand and oil prices. Further efforts can consist of banning the installation of gas-fired boilers in new or retrofitted buildings, facilitating the accelerated market roll-out of heat pumps, prohibiting the production of single-use plastics, adopting and implementing ambitious energy efficiency improvement plans and streamlining permitting and providing governmental support for the construction of renewable energy projects. Follow-up on implementation of widely announced decarbonisation commitments is also essential.
We underscore that tightening sanctions against Russian oil and gas exports isn’t just about ending a war - it’s about dismantling the foundation that enables autocracy to thrive. It’s a global imperative to foster energy independence, peace, climate action and democratic resilience. We also must swiftly welcome Ukraine into the European Union.
Signatories:
Transport & Environment Belgium, EU
NGO Center for Environmental Initiatives “Ecoaction” Ukraine
Razom We Stand Ukraine
Centre for Research on Energy and Clean Air (CREA) United Kingdom
Deutsche Umwelthilfe Germany
Leave it in the Ground Initiative (LINGO) Belgium
Green Transition Denmark Denmark
Bond Beter Leefmilieu Belgium
Ukrainian Security and Cooperation Center Ukraine
Danube-Carpathian Programme Ukraine, Ukraine
Climate Action for Lifelong Learners (CALL) Canada
For a Better Bayou USA
2Celsius Romania
VšĮ Žiedinė ekonomika Lithuania
EKOenergy ecolabel Finland
Net Impact The Gambia Gambia
Oil and Gas Action Network USA
Wall of Women USA
Institute of legislative ideas Ukraine
Egyptian Green Party Egypt
Earth Action, Inc. USA
Disability Peoples Forum Uganda Uganda
International Partnership for Human Rights Belgium
Public Eye Switzerland
Clean Air Action Group Hungary
Expert Forum (EFOR) Romania
ICO “Environment - People - Law” Ukraine
NGO “Technology of Progress” Ukraine
NGO “Open Data Association” Ukraine
Milieudefensie | Friends of the Earth NL Netherlands
NGO Ecoclub Rivne Ukraine
Transform Scotland Scotland
Uplift United Kingdom
NGO Sustainable Development Agency SYNERGY Ukraine
NGO Social Initiative “City of the Sun” Ukraine
Black Sea Women’s Club Ukraine
NGO Environmental Club Eremurus Ukraine
Anti-corruption Headquarters Ukraine
NGO Ekoltava Ukraine
Institute for Social and Economic Transformation Ukraine
Planet Botanical Garden Ukraine
Plato NGO Ukraine
Ukrainian Nature Conservation Group Ukraine
Anti-Corruption Research and Education Centre Ukraine
Andy Gheorghiu Consulting Germany
Clean Cities Campaign Poland Poland
Nordic Ukraine Forum Sweden
EUROPEUM Institute for European Policy Czech Republic
Formando Rutas Germany
FPPE Poland
Center for the Study of Democracy Bulgaria
Association “Energy Efficient Cities of Ukraine” Ukraine
Naturschutzbund Deutschland (NABU) e.V. Germany
Rainforest Action Network USA
Uppsala University Sweden
Institute for Economic Research and Policy Consulting Ukraine
Eco Bucha Ukraine
Deutsche Umwelthilfe e.V. Germany
CEE Bankwatch Network Romania
Instytut Spraw Obywatelskich Poland
Center for international cooperation and project implementation Ukraine
350.org France
Kyiv Municipal League of Public Organizations of People with Disabilities Ukraine
National Ecological Center of Ukraine Ukraine
Center for International Environmental Law France
Ecosense, NGO Ukraine
U-Cycle ( NGO Kyiv Cyclists’ Association) Ukraine
Earth Action, Inc. USA
Aid Organization Bangladesh
Net Impact The Gambia Gambia
Agency for sustainable development of the Carpathian region “FORZA” Ukraine
Women Engage for a Common Future - WECF Netherlands
Africa Bureau For Climate stories-ABOS Kenya
TRAFFED-RDC AMIS D’AROCHA DRC
Asociación Con Ucrania Spain
Climate Action Campaign, Humboldt Unitarian Universalist Fellowship USA
Adarsha Samajik Progoti Sangstha Bangladesh
Green 13 Canada
Associazione Cristiana degli Ucraini in Italia Italy
Rozviy, Youth Climate Initiative Ukraine
Minerva Ventures USA
NGO “Green World” Ukraine
UWEC Work Group Georgia
Gower Street United Kingdom
GDU Project Helmholtz Center Berlin Germany
VCS Verkehrs-Club der Schweiz Switzerland
NGO Plato Ukraine
Chaloupky o.p.s. Czech Republic
Just Finance International Europe
Promote Ukraine Belgium
Bellona Europa Belgium
Estonian Green Movement Estonia
Social Justice Committee, St. Andrew’s United Church of Canada, Halifax Canada
Grandmothers Act to Save the Planet (GASP) Canada
The Secretariat of the Steering Committee of the Eastern Partnership Civil Society Forum Belgium
198 methods USA
Global Witness United Kingdom
Atlantic Energy United Kingdom
Zero Waste Society Ireland
Canopea Belgium
Limity jsme my Czech republic
Earthsight United Kingdom
Businesses for a Livable Climate USA
Call to Action Colorado USA
CatholicNetwork US USA
Colorado Businesses for a Livable Climate USA
Community for Sustainable Energy USA
Greater New Orleans Housing Alliance USA
Green House Connection Center USA
Indivisible Ambassadors USA
Interstate 70 Citizens Advisory Group USA
Larimer Alliance for Health, Safety, & Environment USA
Littleton Business Alliance USA
Mayfair Park Neighborhood Association USA
Mental Health & Inclusion Ministries USA
Mind’s Eye Productions USA
Montbello Neighborhood Improvement Association USA
North Range Concerned Citizens USA
Our Sacred Earth USA
RapidShift Network USA
Save the Environmental Protection Agency USA
Small Business Alliance USA
Southwest Organization for Sustainability USA
Spirit of the Sun USA
System Change Not Climate Change USA
Texas Campaign for the Environment USA
Unite North Metro Denver USA
Wall of Women USA
Western Slope Businesses for a Livable Climate USA
Womxn from the Mountain USA
Working for Racial Equity USA
Climate Risk Horizons India
ZERO – Association for the Earth System Sustainability Portugal
Association of Ethical Shareholders Germany
Ukrainian Network of Integrity and Compliance (UNIC) Ukraine
NGO “Unique Planet” Ukraine
NGO Green Liberty Ukraine
NGO SaveDnipro Ukraine
NGO “Office for the Environment” Ukraine
NGO “Green Generation” Ukraine
Economic Expert Platform Ukraine
Civil Network OPORA Ukraine
WWF-Ukraine Ukraine
Centre for Liberal Modernity (LibMod) Germany
Greenpeace CEE Ukraine
Vitsche e.V. Germany
149-238. Business for Ukraine Coalition, on behalf of 89 international and Ukrainian members.
239-249. Energy Transition Coalition, uniting 10 Ukrainian organizations.
250-300+. RISE Ukraine Coalition, uniting more than 50 organizations.