The effect of European fuel-tax cuts on the oil income of Russia

European fuel tax cuts will lead to significant income transfers to Russia, thus undermining the Union’s sanction efforts against the country. EU politicians should instead consider alternative policies, such as direct income transfers to households, if they want to shield citizens from increased fuel prices without benefiting Russia.

Gars, J., D. Spiro, and H. Wachtmeister. 2022. The effect of European fuel-tax cuts on the oil income of Russia. Nature Energy 7(10):912-913.