The European Union will block most of Russia’s oil imports by 2022, in response to the country’s invasion of Ukraine. However, this ban will not affect the country’s pipelines. Germany and Poland have also pledged to end their imports of Russian oil. Around two-thirds of the oil that comes into the EU comes from the sea, and Hungary has protested.The deal, which was approved by all 27 member states at a summit in Brussels, cut off a vital source of funding for Russia’s war machine. According to Charles Michel, the head of the European Council, Russia currently supplies around 27% of the EU’s oil imports and 40% of its gas. The EU will pay around $400 billion to Russia annually in return.
Despite the lack of sanctions against Russia, the world could still face a shortage of energy supplies. Although the EU has not imposed restrictions on the country’s gas exports, it has frozen the construction of a pipeline from Russia to Germany. The UK, which is one of the countries that gets most of its oil from Russia, has also pledged to stop using Russian crude by the end of the year.
The sixth set of sanctions from the EU includes a ban on Russian oil shipments through the sea. This will affect around two-thirds of the country’s oil imports. Germany and Poland have also pledged to stop importing pipeline oil. The ban will also affect around 90% of Russia’s largest bank, Sberbank, and prevent the country’s financial institutions from transferring money across borders.
The European Union’s members were at an impasse over their refusal to allow Russia to import oil. Hungary, which imports about 65% of its oil from Russia, was the country’s main opponent. Prime Minister Viktor Orban has good relations with Vladimir Putin.
After weeks of negotiations, a compromise was reached that exempted some of the EU’s pipelines from the sanctions. This will allow Russian oil to continue to be transported into the EU. According to Michel, the sanctions will only affect Russian oil that’s transported through the sea.
In practice, the ban on Russian gas imports would be wider since Poland and Germany have already agreed to stop their purchases. This could mean that the world could face a shortage of supplies.
The EU’s humanitarian coordinator, Jens von der Leyen, noted that around 10% of the Russian pipeline’s capacity is covered by the southern section of the Druzhba. She said that the council would look into this issue “as soon as possible.” The EU has also granted the three Central European states additional guarantees that they can still obtain supplies of Russian oil in the event of a disruption in the pipeline’s supply. Vladimir Chizhov, the Russian ambassador to the EU, warned that the country would face “serious problems” if the EU tried to impose a gas embargo.
The European Union agreed to ban Russian oil imports on Friday, after months of negotiations. Despite the protests from member states, such as Hungary, the move was seen as a victory for the country. Prime Minister Viktor Orban said the ban would protect his citizens from the rising cost of fuel.
In a Facebook video, Orban said that Hungary had successfully defeated a proposal from the European Council, which would have prohibited his country from using Russian oil. Other countries, such as the Czech Republic and Slovakia, also asked for more time to stop using Russian oil.
Bulgaria, for instance, had already sought an opt-out from the Russian gas pipeline company. The rising cost of energy has also affected other European Union countries. Some of these countries’ appetite for sanctions has also been reduced due to the region’s financial crisis.
Despite the EU’s oil agreement, it’s still important to note that it’s a compromise deal. Russia is a major contributor to the energy supply of the EU, and it’s expected that the deal will reduce its imports by around 90% by the end of the year. However, given the recent anti-Western rhetoric from Vladimir Putin, I think he’ll likely say that the embargo will cause more economic pain to the region.
The EU should support Ukraine for a long time. The Kremlin knows that the members of the EU have their own ideas on how to deal with Russia, and it’s likely that Putin will try to capitalize on these differences. However, even though Russia will look for new markets, it’s not likely that they’ll be able to find a quick fix.
There are various factors that prevent the EU from reorienting its oil exports to Asia. One of these is the infrastructure that’s not in place to support the exportation of oil. Another issue that could be discussed is the issue of Russian gas. During the summit, Volodymyr Zelensky, the president of Ukraine, called on the members of the EU to stop their internal “quarrels.” Zelensky claimed that they only helped Russia.
In his address, Zelensky said that the members of the EU should stop their internal disputes, which he claimed would only encourage Russia to exert more pressure on them. Kriss Karins, the Prime Minister of Latvia, said that the members should not get carried away by their own interests.
Despite the increasing cost of doing business in Russia, Zelensky noted that the country was still able to pay its debts. On Tuesday, Russia cut off gas supplies to the Netherlands’ GasTerra due to the country’s refusal to pay in roubles. The EU has also said that Russia has already cut off supplies to Bulgaria, Finland, and Poland.