What you should know about the EU plan to ban Russian oil imports | Russia-Ukraine war News

The European Fee has proposed its toughest sanctions but towards Russia, together with a phased oil embargo, as a part of a sixth spherical of retaliatory measures following Moscow’s invasion of Ukraine.

European Fee President Ursula von der Leyen stated on Wednesday the embargo “can be an entire import ban on Russian oil, seaborne and pipeline, crude and refined”, that may happen in levels to present states time to seek out different power sources.

To ensure that the proposal to be authorized, it would want the help of all member states. Some international locations throughout the 27-member bloc have expressed their opposition to an all-out embargo.

“Right now we’re addressing our dependence on Russian oil, and let’s be clear, it gained’t be simple,” von der Leyen instructed the European Parliament in Strasbourg.

“Some member states are strongly depending on Russian oil, however we merely should do it,” she added.

Envoys from European Union international locations haven’t but reached an settlement, however discussions are anticipated to renew on Thursday.

Here’s what you have to know in regards to the proposed embargo:

What’s within the EU plan?

The European Fee is searching for to section out provides of Russian crude oil inside six months and refined merchandise by the tip of 2022.

Beneath the proposal, Hungary and Slovakia may very well be granted an extended interval to adapt to the embargo, till the tip of 2023.

Measures embrace the ban in a month’s time of all delivery, brokerage, insurance coverage and financing providers provided by EU corporations for the transport of Russian oil worldwide, an EU supply instructed the information company Reuters.

The ban would apply to Russian exports of oil worldwide, doubtlessly affecting Moscow’s capability to seek out different consumers after the EU stops shopping for Russian oil.

The EU’s chief govt additionally proposed including Russia’s high financial institution, Sberbank, and two different monetary establishments, to a listing of a number of banks already lower off from the SWIFT messaging system.

If agreed, the embargo would observe the US and the UK, which have already imposed bans in an try to chop one of many largest revenue streams for the Russian financial system.

Ambassadors from the EU’s 27 governments are extensively anticipated to undertake the proposal as early as this week, permitting it to turn out to be legislation quickly after.

An analogous embargo on Russian coal, imposed by the EU in April, took speedy impact for the spot market, and had a four-month wind-down interval for current contracts.

Kremlin spokesman Dmitry Peskov stated on Wednesday that Russia has been wanting into varied choices because it braces for an EU oil embargo.

How would a ban have an effect on EU economies?

Russia is Europe’s largest oil provider, offering 26 p.c of the bloc’s oil imports in 2020. Germany, Poland and the Netherlands are Europe’s largest consumers of Russian oil.

Europe has paid Russia 14 billion euros ($14.94bn) for oil for the reason that begin of what Moscow calls a particular navy operation in Ukraine two months in the past, in line with analysis organisation the Centre for Analysis on Power and Clear Air.

The European Fee is working to hurry up the provision of different power provides to attempt to lower the price of banning Russian oil.

Nonetheless, missing enough and reasonably priced alternate options, the EU is more likely to find yourself going through an elevated power invoice or a slowdown of financial exercise.

Russian political analyst Andrey Ontikov instructed Al Jazeera that Moscow was more likely to discover different consumers outdoors Europe, together with China and India, and stated the EU would face paying greater costs for different oil imports.

“European international locations are capturing themselves within the leg,” Ontikov stated. “I can’t think about at what worth these international locations will get oil [elsewhere]. Perhaps the US will present crude oil, however once more, at what worth?”

Russia’s RIA information company cited Vladimir Dzhabarov, first deputy head of the Russian higher home’s worldwide affairs committee, as saying that Europe will proceed shopping for Russian oil through third international locations as soon as it introduces an embargo.

Why was pure fuel not included within the sanctions plan?

Pure fuel has but to be focused with sanctions. A possible ban has not but been correctly mentioned at EU degree due to the bloc’s reliance on it.

In 2021, the EU imported greater than 40 p.c of its whole fuel consumption from Russia.

Ever for the reason that fuel disruptions that hit some jap EU international locations within the winters of 2006 and 2009, the EU has labored on a typical power coverage to strengthen its power safety and the inner power market.

In 2021, power represented 62 p.c of EU whole imports from Russia, down from 77 p.c in 2011, however the bloc remains to be a great distance from reducing its dependence on Russian power imports.

Al Jazeera’s Dominic Kane, reporting from Berlin, stated fuel was “the elephant within the room” on the Strasbourg Parliament on Wednesday.

“European leaders wish to act quick towards Russia, however they’re caught with the fact of selections that governments throughout Europe remodeled a long time, after they thought that it was of their greatest curiosity to make offers with President Putin,” he stated.

Nonetheless, the EU Fee has taken steps to finish its dependency on Russian fuel.

On March 8, it printed its “REPowerEU” plan, outlining measures to drastically cut back Russian fuel imports earlier than the tip of the yr and attain full independence from Russian fossil fuels earlier than the tip of the last decade.

INTERACTIVE - Russian gas imports into the EU - Europe's reliance on Russian gas
(Al Jazeera)

Which international locations have raised considerations over the proposal?

Hungary, Slovakia, the Czech Republic and Bulgaria have raised considerations in regards to the oil embargo plan.

Slovakia will get practically all of its imported crude from Russia, primarily through the Soviet-era Druzhba pipeline, and it has joined Hungary, additionally extremely reliant on Russian provides, in searching for an exemption from the embargo.

“We agree with this sanction, however are saying that we’d like a transitory interval till we adapt to the scenario,” Slovakia’s financial system minister Richard Sulik instructed a information briefing in Bratislava on Wednesday. “What’s being mentioned in the present day is the period of the transitory interval.”

Sulik stated an extended transition would give Slovakia time to safe different provides.

Hungary said it couldn’t help the proposed embargo as it will destroy its power safety.

“The Brussels bundle of sanctions would ban oil shipments from Russia to Europe, with a somewhat brief discover, in case of Hungary the tip of subsequent yr,” overseas minister Peter Szijjarto stated in a Fb video, including that Hungary can not help the measures of their present kind.

Hungary might solely agree to those measures if crude oil imports from Russia through pipeline had been exempted from the sanctions, the minister stated.

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