Europe’s $1 Trillion Mistake: The Cost of Cutting Off Russian Oil

Energy shockwaves ripple through EU economies as sanctions backfire spectacularly.

The great energy divorce

When Brussels slammed the door on Russian crude, they forgot to check the price tag. Now Europe's facing a brutal reckoning—$1 trillion in lost economic output, and counting. That's what happens when politicians play energy chess without an endgame.

Gaslighting themselves

The 'green transition' suddenly looks more like a fire sale. Desperate LNG imports from Qatar and the US come with premium pricing—because nothing says 'strategic autonomy' like begging for energy handouts. Meanwhile, Moscow just rerouted its oil eastward, laughing all the way to the yuan-denominated bank.

Finance never forgets

Markets have a funny way of punishing virtue signaling. While ESG funds patted themselves on the back, traditional energy ETFs quietly outperformed—proving once again that morality is a luxury the average pension fund can't afford.

$1 Trillion in Losses for Europe for Not Buying Russian Oil, Claims Official

Alexander Grushko, Russian Deputy Foreign Minister, said to Tass that Europe is on the losing side of the oil wars.he said.

Grushko added that Europe is buying Russian oil through other countries, which is 4-5 times higher in value. He also stated that electricity across the European Union has become 2-3 times more expensive.he said.

In 2023, Saudi Arabia laundered Russian oil to Europe at a premium price. The Kingdom of Saudi Arabia procured oil at discounted rates from Russia and sold it in the European Union. The EU paid more money per barrel for the energy deal, making the transaction expensive. Developing countries such as India, China, Iran, Brazil, South Africa, and Ethiopia, among others, are still buying oil from Russia despite the US sanctions.