The Foreign Intelligence Service of Ukraine Participated in the Kyiv Sanctions Summit

First Deputy Head of the Foreign Intelligence Service of Ukraine Oleh Luhovskyi took part in the Kyiv Sanctions Summit, which analyzed the impact of the sanctions imposed on russia’s economy.

In his speech, he emphasized that the energy sector remains a key source of funding for russia’s military machine. This year, the Sanctions Coalition has imposed restrictions on more than 500 entities in the rf’s energy sector. These include oil tankers, traders, financial institutions, and a significant number of organizations that are part of the russian shadow fleet ecosystem.

As of today, the price of russian oil has dropped to a record low of $40 per barrel in seaports. Besides, the discount on Urals crude oil has almost doubled – from $12 to $20 per barrel, while tanker freight costs have increased by 15 %. Since November, we have seen a decline in russia’s oil exports by sea.

“Sanctions pressure has led to a 30 million ton reduction in oil production in russia this year. This trend will intensify,” Oleh Luhovskyi emphasized, adding that the year 2025 has seen a 20 % decrease in the drilling of new wells for oil production in the rf.

As a result, international sanctions have led to a significant deficit in the russian federal budget. According to estimates by the Foreign Intelligence Service of Ukraine, russia will lose $30 billion in oil and gas revenues this year and may lose around $50 billion next year.

The event was attended by Prime Minister of Ukraine Yuliya Svyrydenko, European Union Sanctions Envoy David O’Sullivan, Advisor – Commissioner of the President of Ukraine for Sanctions Policy Vladyslav Vlasiuk, representatives of Ukraine, Belgium, Great Britain, Denmark, Estonia, Ireland, Iceland, Italy, Canada, Cyprus, Latvia, Lithuania, the Netherlands, Germany, Norway, Poland, Finland, France, Sweden, and the European Union.

The Summit will result in the development of further steps to strengthen the Sanctions Coalition and weaken the economic foundation of russia’s military machine.