The aim of EU sanctions is to “break the Russian war machine”, with measures on Kremlin oil now imminent, the president of the European Council has said, as Germany pivoted to back the move.
A proposal to phase in a prohibition on Russian oil imports will be discussed by member state ambassadors in Brussels on Wednesday, with the most dependent, such as Slovakia and Hungary, seeking exemptions.
Those championing the ban have been bolstered by a change in approach in Germany, where reliance on Russian oil has been reduced from 35% at the end of last year to 12%.
The German economics minister, Robert Habeck, has called on EU member states to show “solidarity with Ukraine” and “do their bit”.
Speaking at the opening of a new liquefied natural gas terminal in the Greek port of Alexandroupolis, the head of the European Council, Charles Michel, who chairs meetings of EU leaders, said the war in Ukraine was a “moment of urgency, a moment of truth”.
He said: “Our goal is simple: we must break the Russian war machine. And I am confident that the council will imminently impose further sanctions, notably on Russian oil.”
The European Commission will send its proposals on a phased-in ban on Russian oil imports to the capitals on Tuesday evening ahead of a speech on Wednesday by the commission’s president, Ursula von der Leyen, in which she will lay out the details to the European Parliament.
Russia accounts for about 25% of oil imports to the EU, although the level of dependency varies between member states. The German government signaled at the weekend that it believed it could completely phase out its use “by the late summer”.
Slovakia’s economics minister, Richard Sulík, said on Tuesday, however, that his country’s dependence on oil from the Soviet-era Druzhba pipeline meant it would not be able to end the flow of oil for several years. “We will insist on the exemption, for sure,” he said.
Slovakia has said it needs between four and six years to convert its oil refineries to process crude from other sources, although the commission is said to consider this phase-out period as too long.
Hungary’s foreign minister, Péter Szijjártó, said Budapest could not support sanctions “that will make the transport of natural gas or oil from Russia to Hungary impossible”.
“The point is simple: that Hungary’s energy supply cannot be endangered, because no one can expect us to allow the price of the war [in Ukraine] to be paid by Hungarians,” he said. “It is currently physically impossible for Hungary and its economy to function without Russian oil.”
As well as Slovakia and Hungary, Bulgaria and the Czech Republic are highly dependent on the flow of oil from Russia. The comments from Budapest and Bratislava reflect a desire to maximize their leverage going into the internal discussions.
The latest proposed sanctions will need unanimous approval to become the sixth wave of restrictive measures applied to the Russian economy since the war in Ukraine began on 24 February.
The measures are the most politically sensitive yet, with officials fearing that a sudden increase in oil prices could lead to soaring prices at petrol pumps, triggering protests.
During a two-hour phone call with the French president, Emmanuel Macron, Russia’s president said EU sanctions were fueling a problem with food supply in Europe. Putin also claimed that “despite Kyiv’s inconsistency and its lack of readiness for serious work, the Russian side is still ready for dialogue”.
The commission is expected to propose a gradual phasing-out of Russian oil over six to nine months, with certain countries permitted extra time and offered alternative supply from other member states.
Poland and the Baltic states, some of Ukraine’s strongest allies in the EU, want an immediate ban but this position has not gained traction.
Meanwhile, the European commissioner for energy, Kadri Simson, said she would present a plan later this month for how the EU could replace two-thirds of its use of Russian gas by the end of 2022.
Speaking in the European parliament, Simson said the EU’s executive branch was exploring how to hasten the transition from gas to renewable energy.
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On Monday, she had warned that a large number of European energy companies faced a decision in mid-May on whether to breach EU sanctions by paying their Russian bills in roubles as demanded by Vladimir Putin or potentially losing supply.
In a speech to the European parliament, Italy’s prime minister, Mario Draghi, hinted at his government’s concerns given its reliance on Russian gas. “We can’t simply support sanctions,” he said. “We need to ensure that we can achieve independence from Russian gas… At the same time, we need to find solutions to protect families and businesses from increased energy costs.”
It emerged in a quarterly financial report on Tuesday that Uniper remains in talks with Berlin and the Russian supplier Gazprom about how to deal with the situation.
Uniper, Germany’s largest importer of Russian gas, declined to comment on details of the talks, saying only that no binding assessment had been made.
www.theguardian.com
George is Digismak’s reported cum editor with 13 years of experience in Journalism