Podcast Summary: The Indicator from Planet Money

Episode: Who's propping up Russian oil?
Date: November 5, 2025
Hosts: Darian Woods, Jackie Northam
Guest: Isaac Levi (Center for Research, Energy and Clean Air)

Episode Overview

This episode delves into the complexity and contradictions of global sanctions on Russia, especially those aimed at the Russian energy sector. Despite over 5,000 sanctions imposed after the invasion of Ukraine, Russian oil and gas exports continue to flow—often to countries that publicly condemn the war or support Ukraine. The episode spotlights how nations, including U.S. allies and even the U.S. itself, are still propping up Russian revenue streams, often through loopholes and selective enforcement of sanctions.

Key Discussion Points & Insights

1. The Sanctions Landscape

• Sanctions Overview: Since Russia’s invasion of Ukraine, the U.S. and allies have imposed over 5,000 sanctions, targeting everything from energy exports to oligarchs and financial institutions ([00:26]).
• Intended Effect: These measures aimed to cripple the Kremlin’s ability to finance the war ([00:34]).
• Observed Outcome: While Russia’s economy is showing strain (higher taxes, interest rates, depleted reserves), the sanctions have not stopped the war ([00:59]).

2. The "Double Game": Allies Buying Russian Oil

• Hypocrisy Highlighted: Some countries present themselves as anti-war yet buy discounted Russian oil and gas, indirectly funding the war they publicly oppose ([01:11]).
• Quote:

  "You have countries professing support for Ukraine but then turn a blind eye when it comes to things like buying Russian oil and gas." – Jackie Northam [01:11]

3. Case Study: Taiwan’s Contradictions

• Unexpected Player: Taiwan, despite facing a threat from China similar to Ukraine’s from Russia, is the world’s largest importer of Russian naphtha—a critical material for its massive semiconductor industry ([03:15]-[03:54]).
• Naphtha’s Role:

  "Naphtha is an oil product that's used for really everything from paint thinner to jet fuel. And it's also a critical element in the production of semiconductors." – Jackie Northam [03:43]

• Report & Findings:
  • NGOs, including the Center for Research, Energy and Clean Air, report that Taiwan hasn’t sanctioned Russian fossil fuels ([04:04]-[04:37]).
  • While the Taiwanese government stopped direct imports, private companies, especially Formosa Petrochemical Corporation, continued—comprising 90% of imports, which have increased sixfold since the war began, totaling around $4.9 billion ([05:00]-[05:41]).
  • An estimated $2 billion of that is direct revenue for the Kremlin, potentially funding destructive military operations ([05:41]-[05:57]).
• Security Concerns:
  • Taiwan’s reliance on Russian naphtha is seen as a vulnerability, especially considering Russia’s alliance with China ([06:09]).
  • Concerns exist that Beijing could pressure Moscow to cut Taiwan off, with serious economic and security implications ([06:09]).

4. Loopholes and Rationalizations

• Profit Motive:

  “When we see that there are countries or regions that don't have sanctions or any bans, legal measures…they will just do whatever is in their best interest to maximize their profits.” – Isaac Levi [05:00]

• Discounted Oil: Russia offers about a 5% discount to Taiwan compared to its next largest supplier (the UAE), incentivizing continued trade ([06:34]).
• Aid vs. Imports: Taiwan’s financial support to Ukraine (~$100 million) pales in comparison to its multi-billion-dollar purchases from Russia ([06:34]).

5. Broader Global Trends

• Europe: The European Union has reduced Russian energy imports except for Hungary and Slovakia, which have increased them since the war ([07:03]-[07:27]).

• Other Allies: Turkey and India remain major buyers of Russian oil. The U.S., under President Trump, has imposed tariffs on India for its extensive purchases but spared other allies ([07:37]-[07:55]).

  "It is striking that Trump singled out India for its tariffs while sparing Turkey and Hungary." – Darian Woods [07:55]

• U.S. Involvement:
  • Despite sanctions, the U.S. buys over a billion dollars in refined products, such as gasoline, fertilizers, and jet fuel, made from Russian crude processed in third countries ([08:05]-[08:14]).

  "The US is still dependent on Russian energy as well." – Jackie Northam [08:14]

6. Recent Developments and Policy Shifts

• Taiwan’s Response: Following reports on naphtha’s strategic importance, Taiwanese officials stated that Formosa Petrochemical’s contracts for Russian naphtha are expiring, with no future renewals planned ([08:42]).
• European Goals: Europe aims to end Russian energy imports by 2027, though Hungary and Slovakia resist ([08:59]).
• U.S. Position: No declared plan to restrict imports of Russian energy-derived products ([09:09]).

Notable Quotes & Memorable Moments

• On Policy Contradictions:

  "There is some hypocrisy, although I would say Taiwan isn't alone in this." – Isaac Levi [06:58]

• On the Scale of Funding:

  "It's enough money for the Russian state to pay for 170,000 Gibera drones that raid havoc and cause huge amount of destruction and death in Ukraine each day." – Isaac Levi [05:46]

• On Security Implications:

  “If Beijing puts pressure on the Kremlin to halt all shipments of naphtha... it could create real economic or national security concerns.” – Jackie Northam [06:09]

Timestamps for Key Segments

• [00:26] — Sanctions overview and intended effects
• [01:11] — Highlighting hypocrisy and ongoing Russian exports
• [03:15] — Taiwan’s role and reliance on Russian naphtha
• [04:37] — Isaac Levi introduces NGO report findings
• [05:41] — Quantifying Russia’s revenue from Taiwan imports
• [06:09] — Discussion of security vulnerabilities for Taiwan
• [07:03] — European and other allies’ double game
• [08:05] — U.S. purchases of Russian-refined petroleum
• [08:42] — Taiwanese government signals policy change
• [08:59] — Europe’s end-goal for Russian energy
• [09:09] — Current U.S. stance

Conclusion

This episode unpacks the tangled web of international sanctions, self-interest, and realpolitik undermining efforts to cut off Russian revenue. Taiwan, Europe, Turkey, India, and even the U.S. remain implicated in complex supply chains that funnel money to Russia despite public posturing. The episode underscores how economic incentives often outweigh diplomatic rhetoric, with significant consequences for the future of the conflict in Ukraine and global energy security.