Banned Russian Fuel Is Still Reaching EU Ports: The Three Loopholes Keeping Oil Revenue Flowing

The system is notoriously difficult to verify. EU operators are supposed to request documentary proof of segregation, but CREA and other analysts have long warned that paper-based attestations from third-country refineries are not backed by reliable enforcement mechanisms .

By late June 2026, CREA estimated the EU had imported nearly €1 billion worth of fuel via this route in 2026 alone . The July data shows the problem is worsening: 18 shipments of oil products from refineries that run partly on Russian crude entered EU ports in July, more than double the 8 shipments recorded in June . Spain and Cyprus each took seven of the July cargoes, with Croatia, France, Greece, Italy, Malta, and the Netherlands also receiving deliveries. Of those shipments, eight came via Turkish refineries, five via India, and five via Georgia .

G7-Linked Tankers: The Greek Surge

A second channel undermining the oil price cap is the growing involvement of G7-linked shipping. In July 2026, tankers flagged, owned, or operated by G7+ companies lifted 36.2% of Russia's crude exports — the highest share in a year, up from 34.4% in June . Russia exported 4.3 million barrels per day of crude that month .

Greek shipping operators are the primary driver. Greek-linked tankers increased their liftings from 24.9 million barrels in June to 26.4 million barrels in July — the highest monthly volume in nearly three years, keeping Greece in pole position in the Russian crude trade . Greece has pushed back on stricter maritime enforcement, and its vessels continue to transport Russian crude under G7+ flags or insurance, sustaining the flow and keeping transport costs low for Moscow .

This matters because maintaining access to G7-linked tanker services allows Russia to sell crude above the price cap without resorting fully to older, slower, and more expensive "shadow fleet" vessels .

The Belgium Exception: 100% Reliance on Russian LNG

The third channel is not a loophole but a gap in energy policy. CREA highlighted that Belgium sourced all of its LNG imports from Russia in July 2026 — making the country 100% dependent on Russian liquefied natural gas for its LNG supply that month . Belgium imported approximately 0.4 million tons of LNG exclusively from Russia .

This was partly driven by Middle East supply disruption from the Iran conflict cutting other LNG sources . Belgium, Europe's fifth-largest LNG importer, saw its total LNG imports fall by more than 40% in July compared with the same month last year . The situation underscores how EU member states remain structurally reliant on Russian gas even while imposing oil sanctions, exposing a major enforcement and energy-policy gap.

Has the Oil Price Cap Failed?

CREA's blunt assessment is that the oil price cap has been hollowed out. "The oil price cap has failed to impose a durable constraint on Russian crude export earnings," the group concluded .

While Russia's total fossil fuel export revenues fell 12% month-on-month in July to €683 million per day — driven by lower gas prices — crude oil export revenues were actually flat, up 1% to €392 million per day . The cap mechanism, designed to force Russia to sell at a discount or cut production, has been undercut by the refining loophole, the availability of G7-linked tankers, and weak enforcement at EU borders .

Summary of Key Findings

• 18 shipments of fuel made partly from Russian crude entered EU ports in July, double June's total .
• €1 billion in fuel refined from Russian crude has entered the EU in 2026 alone via third countries .
• 36.2% of Russia's crude exports were carried by G7-linked tankers in July — a one-year high .
• Greek operators shipped 26.4 million barrels of Russian crude in July, a near-three-year high .
• Belgium sourced 100% of its LNG imports from Russia in July, about 400,000 tonnes .
• Russia's crude oil export revenues in July were €392 million per day, flat versus June .
• CREA concluded the oil price cap "has failed to impose a durable constraint on Russian crude export earnings" .