The EU imposes an embargo on oil from Russia. What is more

EU leaders at the summit in Brussels were able to unblock the adoption of Russia’s oil embargo. How were you able to resolve the biggest dispute over sanctions against the Russian Federation and what exceptions were made for it.

In the European Union, for almost a month they did not agree to an embargo on Russia’s oil, which is a key element of the sixth package of sanctions against the Russian Federation. Many did not expect a breakthrough from the extraordinary summit on May 30-31. However, shortly before midnight on the first day, the leaders of the EU countries were able to reach a compromise.

EU embargo to seize 90% of Russia’s oil imports

“The European Council agrees that the sixth package of sanctions against Russia will extend crude and oil products shipped from Russia to EU member states, with a temporary exemption for crude shipped through of the pipeline, ”the EU summit concluded in a statement. called the Council of Europe.

So far, it is a political agreement, on the basis of which the sixth package of sanctions against Moscow for the war against Ukraine has been formally adopted. To do so, on Wednesday, June 1, the permanent representatives of EU countries will gather, the head of the European Council, Charles Michel, said at a nightly press conference.

“Now the EU Council should be able to finalize a ban on almost 90% of all Russia’s oil imports by the end of this year,” European Commission President Ursula von der Leyen said.

The 90% he named was different from Michel’s figure (two-thirds of Russia’s oil) when he announced the compromise. I need to be clear. Two -thirds of Russia’s oil is supplied to the EU by tankers. An embargo will be imposed on these deliveries.

The rest is supplied through the Druzhba oil pipeline. Its northern branch goes to Poland and Germany. These countries have unilaterally promised to abandon oil from the Russian Federation. With their share, the embargo will cover 90%.

The EU wants to abandon all Russian oil

The remaining 10 or 11% go to the southern branch of “Friendship” in Hungary, Slovakia and the Czech Republic. An exception will be made for them. However, it will not last forever. “The European Council will return soon to the issue of a temporary exemption for the crude pipeline,” the summit communiqué added. When exactly will EU leaders discuss an embargo on all Russian oil?

For Hungary, for example, it is necessary to increase the capacity of the Adria oil pipeline coming to this country from Croatia.

“The time required to increase capacity is approximately 45 to 60 days. These are reasonable hours. And it requires some investment,” von der Leyen said. The question of whether the subject of the embargo will be returned to the EU summit at the end of June or later remains open.

When will the EU embargo on Russia’s oil take effect?

The ban on Russia’s oil supply by tankers will not take effect immediately. As a rule, EU sanctions provide a three -month period for the reduction of existing contracts. Four months were granted for the coal embargo from the Russian Federation. As for oil, the head of the European Commission said it would happen before the end of this year.

Ursula von der Leyen called the same term in early May. He then proposed to completely ban the import of crude oil for six months, and oil products – eight months. Both terms – six and eight months – were named by two DW sources in EU structures.

However, they did not specify from what point they would count. This will be clear when the legal decision on penalties is approved and published.

An additional exception is provided for the Czech Republic, so that there is no shortage of diesel fuel. The country will be allowed to import Russian oil products for another 18 months. It is also not clear how they will be counted: from the date of introduction of the embargo or from the beginning of 2023.

The EU did not know until recently if they had agreed to an oil embargo

As a rule, EU summits are considered the last resort to reach a compromise between its states. Therefore, many have longed for hope for this summit meeting. However, on the eve of some Brussels officials and diplomats noted that the issue of imposing an oil embargo is technically too complicated to finally be resolved at the summit.

Ursula von der Leyen did not inspire supporters of the embargo, saying before the summit began: “It is unlikely to be decided in the next 48 hours, but I am sure that after that there will be a chance.”

But German Chancellor Olaf Scholz is confident that a compromise has been reached. “No one can predict if this will exactly happen, but everything I hear suggests that there may be a consensus. And soon it will still happen,” the chancellor cautiously predicted.

But the focus of journalists was Hungarian Prime Minister Viktor Orban, who is considered the main opponent of the oil embargo. Orban did not speak to the press at every summit, he now spoke not only in Hungarian, but also in English before the meeting.

“There is no agreement at all,” the prime minister said, despite a proposal to make an exception for pipeline oil.

Guarantees in the event of an accident on the Druzhba oil pipeline

After that, Eduard Heger, Slovakia’s prime minister, who is stronger than other EU countries that rely on Russia’s oil, also tried to persuade Viktor Orban. Why did Orban still not agree to the embargo? The object is in the southern branch of “Druzhba”, which passes through the territory of Ukraine, before the oil reaches Hungary and Slovakia.

“We need guarantees that in the event of an accident on a pipeline running through Ukraine, we will have the right to receive Russian oil from other sources. If we receive them, then agree we (on embargo. – Ed.), “Orban said.

The Czech Republic has similar concerns. After all, all three countries have no access to the sea, so they are not able to independently supply oil from other sources of tankers. To reassure them, the summit communiqué included an explanation: “In the event of a sudden cessation of supplies, emergency measures will be introduced to ensure their safety.”

In practice, these states will be given the opportunity to buy oil from Russia and deliver it by tankers.

At the same time, the final decision on penalties should guarantee a level of playing field and fair competition, the communiqué said. This has been insisted by other EU states, who do not want anyone to take advantage of the expected exceptions for their own benefit.

DW sources at the summit assured that the discussion was “surprisingly justified” because the leaders of EU countries were sympathetic to the practical problems of the oil embargo and tried to resolve them.

Source: Russian Service DW

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