The European Union's ban on Russian oil and the West's $60-a-barrel price ceiling are costing the Kremlin more than $170 million a day, according to the Center for Energy and Clean Air Research, Insider reported.

The Finland-based think tank estimates that Russia's crude oil exports fell 12 percent in December. The country's crude oil revenues fell 32%, largely because of the latest round of Western sanctions. Last month, the EU officially banned offshore oil imports from Russia and imposed a $60 price cap on Russian oil. The sanctions prevent Russia from using Western transportation and insurance services when moving its oil through world markets.

These restrictions prevent sales of one of Russia's most lucrative export commodities. Bloomberg reported that the country lost $15 million in revenue from oil exports in the last week of 2022, with only China, India and Turkey among the few remaining buyers.

They demanded higher discounts on Russian oil at the established price ceiling. Russia's flagship oil product is currently trading well below the $60 price ceiling.

CREA estimates that impediments related to energy sanctions are costing Russia $170 million a day. Losses could even rise to 280 million euros, or $300 million a day, by Feb. 5, when the EU is expected to ban Russian petroleum products.