The European Union wants to stop most oil imports from Russia by the end of the year, thereby depriving the Kremlin of a source of money for its war of aggression against Ukraine. At their special summit in Brussels late Monday evening, the 27 heads of state and government agreed on a compromise that accommodated Hungary: the country had spoken out against a complete oil embargo given its heavy dependence on Russian energy supplies.
The agreement that has now been reached provides for an import ban for Russian oil by sea, which accounts for two-thirds of deliveries to the EU, said EU Council President Charles Michel. Hungary can continue to stock up on this overland via the “Druzhba” pipeline.
Federal Chancellor Olaf Scholz nevertheless spoke of drastic sanctions against Russia. According to EU Commission President Ursula von der Leyen, EU oil imports from Russia will be reduced by around 90 percent by the end of the year, despite the exception for pipeline deliveries.
The background to this number is that Germany and Poland have already made it clear that they do not want to benefit from the pipeline oil exemption.
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Like Hungary, the Czech Republic and Slovakia, both countries are connected to the only pipeline coming from Russia. In Germany, the line known as “Druschba” (friendship) has so far supplied the large East German refineries in Schwedt and Leuna.
The agreement on the far-reaching embargo pushed oil prices to their highest level in more than two months on Tuesday. North Sea oil Brent rose by up to 1.6 percent to $123.58 per barrel. US oil WTI rose at times by 3.4 percent to $118.97 per barrel.
The partial oil embargo is part of a new package of punitive measures that the heads of state and government decided at their summit. Among other things, it provides for the freezing of assets and travel bans on individuals as well as the exclusion of the largest Russian financial institution Sberbank from the global banking communication network Swift, from which the EU has already thrown a number of smaller Russian banks. In addition, three major Russian state broadcasters are no longer allowed to distribute their content in the EU.
It was also agreed at the summit to provide Ukraine with an aid tranche of nine billion dollars to provide economic support to the war-torn country, as Michel announced.
The EU countries are massively restricting oil imports from Russia.
(Photo: dpa)
So far, the EU has put together five packages of sanctions against Russia for its war of aggression against Ukraine. The punitive measures are aimed at more than 1,000 people, including Kremlin chief Vladimir Putin and senior members of his government, oligarchs loyal to the Kremlin, banks and the coal sector. A sixth round of sanctions was announced on May 4, but this was slowed down by the dispute over the oil embargo.
When EU Commission President Ursula von der Leyen presented the new package for the first time, it still contained a gradual ban on imports of Russian crude oil and refined products within six months. However, Hungary’s Prime Minister Viktor Orban made it clear in Brussels that he would only support new sanctions against Moscow if there were guarantees for Russian oil supplies to his country.
Hungary gets more than 60 percent of its oil from Russia and 85 percent of natural gas. The Eastern European countries of the Czech Republic, Slovakia and Bulgaria also expressed concern about the effects of a total oil embargo on their economies and emphasized that they could not do without Russian energy supplies in the short term.
“We want to stop Russia’s war machine”
Michel and von der Leyen celebrated the compromise that has now been reached to leave the pipeline open over land as a success. “We want to stop Russia’s war machine,” said the EU Council President. He described the deal as a “remarkable achievement”. More than ever it is important to show that the EU can be strong and tough.
The compromise was preceded by an appeal by Ukrainian President Volodymyr Zelensky to the European Union on Monday to stop the Kremlin’s “war machine” with further sanctions against Russia. In a 10-minute video address to the EU summit, he called on the 27 leaders to end “internal disputes” that “only fuel Russia to put more and more pressure on Europe.”
The new sanctions package must be “agreed, it must be effective, including oil”. An oil embargo would make Moscow “feel the price of what it is doing to Ukraine” and the rest of Europe. Only then would Russia be persuaded to seek peace. It is extremely important that sanctions are passed as soon as possible.
Zelensky has repeatedly called for action against the Russian energy sector. The EU gets around 40 percent of its natural gas and 25 percent of its oil from Russia; Every day, billions flow to Russia and thus also finance the Russian war of aggression against Ukraine.
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