EU announces partial Russian oil embargo agreement

European Union (EU) leaders reached a political agreement to approve a Russian oil embargo by two-thirds, the most onerous economic measure taken against Moscow since the start of the war in Ukraine. The announcement was made by the President of the European Council, Charles Michel, on Monday, May 30.

“An agreement to ban Russian oil exports to the EU, immediately hitting two-thirds of Russia’s oil imports and cutting off an important source of funding for its war machine,” Michel wrote on Twitter. “Maximum pressure on Russia to end the war.”

EU authorities, backed by France and Germany, the biggest consumers of Russian energy, claimed that the embargo was essential to increase pressure on the Kremlin and the Russian economy, thus eliminating one of its primary sources of income. Up to April, the EU is estimated to have disbursed up to €46bn (R$235bn) in Russian oil and gas purchases.

“I am pleased that European leaders have agreed in principle on this sixth sanctions package,” said European Commission President Ursula von der Leyen. “The Council should now be able to formalize an embargo on nearly 90% of oil imports by the end of the year. This is an important step forward.”

When the EU submitted the embargo plan in early May, the EU signaled that a complete halt of oil imports could be implemented within six months and refined goods within a year. According to the plan, Hungary and Slovakia would have until the end of 2023 to adjust to the new regulations, but it is unknown what terms were agreed on the 30th.

To avoid a stalemate, it was agreed that only seaborne imports would be affected for the time being. The pipes will be given a “temporary permit” to keep operating.

The Russian government has not yet commented nor revealed the potential impact of the embargo on the Russian economy. Earlier, while European negotiators were still at the table, Ukrainian President Volodymyr Zelensky urged the EU to halt purchases of Russian oil.

“The sooner this happens, the sooner Russian oil will be completely abandoned, and the sooner Europe will gain,” he added in comments issued by Kyiv.

Until the outbreak of the Ukrainian conflict, Russia was the EU’s largest supplier of gas, oil, and derivatives. In the case of oil, Russia accounted for 27% of all sales, with an even larger share of refined products. There has been no advanced discussion of equivalent limitations for gas imports.

Source: O Globo

To read the full original article, please go to:

https://oglobo.globo.com/mundo/noticia/2022/05/ue-anuncia-acordo-para-embargo-parcial-as-importacoes-de-petroleo-russo.ghtml

Sharing is caring!