World

EU proposes to phase out Russian oil with sanctions against Moscow

The European Commission, the EU’s executive body, proposed new sanctions against the Kremlin on Wednesday. This includes a six-month phase-out of Russia’s crude oil imports.

Russia’s provocative invasion of Ukraine, And evidence of war crimes has led the European Union to take bolder steps regarding energy sanctions. However, imposing measures that could reduce or completely reduce Russia’s energy supply to the EU was a complex task for Brock.

This is because the region depends on Russia for several energy sources, including oil. In 2020, Russian oil imports accounted for about 25% of block crude oil purchases. Regional Statistics Bureau.

“Let’s be clear, it’s not easy,” Ursula von der Leyen, President of the European Commission, said in a speech to the European Parliament on Wednesday.

“Some member states are heavily dependent on Russian oil. But we need to work on it. We are currently proposing a ban on Russian oil. This is all about crude oil and refining. It will be a complete import ban on Russian oil, sea and pipelines. “

Oil prices on Wednesday morning were trading about 3% higher. Brent crude oil In midnight trading in Europe, futures were $ 108.30 a barrel.

Exemption

The ban was a very controversial topic within the EU, but the move gained momentum after Germany supported the idea. Two EU countries — Slovakia and Hungary are heavily dependent on Russia’s energy — demanding exemptions..

Von der Leyen chose not to reveal the details of the exemption during his speech, but three EU officials who did not want to be named because of the delicate nature of the matter said this flexibility to the Commission’s proposal. I confirmed with CNBC that it contains. Slovakia has a longer period to phase out Russian oil.

Two of the anonymous officials said both countries must stop Russia’s oil imports by the end of 2023.

On Wednesday, von der Leyen explained that the six-month phasing out period in most EU countries would give commodity markets time to adjust.

“We maximize pressure on Russia while minimizing collateral damage to us and our partners around the world. To support Ukraine, our own economy must remain strong. “No,” she added.

The war in Ukraine has brought new economic concerns to the EU. The region started this year in a positive position after two years of response. Coronavirus pandemicHowever, as the conflict in Ukraine progressed, it came to an abrupt end.

Oil embargo is built on Russian coal ban It was announced last month. There is also a growing outlook for regulations on Russia’s natural gas.

Approved by Sberbank

Wednesday’s proposal to ban oil represents the EU’s sixth sanctions against Russia. This package also includes the removal of Sberbank from the international payment system SWIFT.

“We have abolished Russia’s largest bank and two other major banks, the SWIFT Sberbank, which has hit banks that are systematically important to Russia’s financial system and its ability to destroy Putin. “Fonde Araien also said on Wednesday.

In addition, the Commission has banned three Russian state broadcasters from European radio waves, as well as being involved in war crimes in Bucha, Ukraine and actions in the besieged city of Mariupol, Russian officials and other individuals. I want to sanction. ..

All of these measures were discussed by the European ambassador on Wednesday morning before the sanctions came into effect. It may take several days for sanctions to be fully approved at EU level.

CNBC politics

Read more about CNBC’s political coverage:

EU proposes to phase out Russian oil with sanctions against Moscow

Source link EU proposes to phase out Russian oil with sanctions against Moscow

Back to top button