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In contrast to the choice to cease utilizing Russia’s coal, which the EU shortly authorized in April, sanctions focusing on Russia’s oil business are usually not as straightforward to impose. The EU spent 5 billion EUR on coal imports from Russia in 2021, however needed to pay as much as 71 billion EUR to purchase oil from Moscow. An oil import ban can be a giant blow to Russia, however with its present dependence on Russia’s power provide, it’s clear that EU members can not go this ban frivolously.
Forward of the Could 4 assembly of the ambassadors of the 27 EU member states, referred to as to debate the content material of the sixth bundle of sanctions towards Russia, some diplomatic sources have revealed that the EU is split over the plan to ban oil imports from Russia. The draft new sanctions bundle towards Russia proposes that EU member states implement an order to cease importing oil from Russia step-by-step, inside 6 to eight months. Hungary and Slovakia, two EU members that rely nearly 100% on crude oil provides from Russia, are allowed implement the embargo a number of months later than different members.
Poland has introduced its readiness to change into fully unbiased from Russian oil and can help international locations in reducing off fossil gasoline provides from Russia. Warsaw has urged the EU to provide you with a particular date by which member states should cease importing Russian oil and hopes the ban will take impact earlier than the tip of 2022.
Germany has additionally introduced its assist for a step-by-step embargo. Berlin has made nice progress in its efforts to scale back its dependence on Russian power, and says that provides from Russia at present account for less than 12% of Germany’s complete crude oil imports.
In the meantime, Slovakia believes that it’s going to take a number of years and a big sum of money to have the ability to implement the ban. The Slovak refinery is designed to course of solely oil from Russia, and if sanctions are to be imposed, it must regulate or nearly fully exchange the system so as to import oil from one other provider.
As one of many EU international locations that depends closely on Russian power, Hungary additionally stated that it at present has no different alternative and must spend some huge cash on gasoline if there isn’t a provide from Russia. In accordance with some sources, Bulgaria and the Czech Republic can also search to keep away from imposing sanctions on Russia’s oil business.
Whereas the EU is making an attempt to agree on sanctions towards Russia’s oil, there are extra warnings within the media in regards to the threat of escalating world power costs, negatively affecting economies, together with EU members. In accordance with a survey launched by the German Growth Financial institution (KfW) on Could 3, about half of the municipalities in Germany, the Europe’s largest economic system, are experiencing difficulties associated to rising power costs.
Italian Prime Minister Mario Draghi referred to as on the EU to behave quick to deal with the issue of rising power costs, stressing that the bloc wanted structural options. The Italian chief even stated that European international locations are within the whirlpool of a multi-dimensional disaster, within the fields of safety, humanitarian points, power and the economic system.
Poland has needed to get assist from Germany whereas Bulgaria wants assist from Greece, after Russia’s Gazprom power group reduce off gasoline provides final week, accusing the 2 international locations of not paying their contracts in rubles on the request of Russia. Nevertheless, such assist choices are solely thought-about non permanent. Clearly, the EU must proceed to think about systemic and long-term measures to scale back its dependence on Russian power provides, as 30% of the oil consumed within the bloc continues to be imported from Russia.
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