Russia Ukraine war: the EU had already banned the import of Russian coal.
Kyiv:
The EU will propose a gradual ban on Russian oil imports as part of a new round of sanctions against Russia for its invasion of Ukraine, sources said Sunday.
The European Commission, which is preparing sanctions for the bloc, is currently preparing a text that can be submitted to the 27 member states as early as Wednesday, diplomats said.
Several diplomats said the oil ban was made possible after a reversal by Germany, which had said the measure would do too much damage to its economy.
EU foreign affairs chief Josep Borrell said Russia is stepping up its attacks in Ukraine, making new sanctions “absolutely essential”.
“We must use our economic and financial capabilities to make Russia pay the price for what it is doing,” he said.
The commission will propose to introduce the ban in six to eight months to give countries time to diversify their offerings, the sources said.
The ban requires unanimous support yet could derail, with Hungary expected to face strong opposition because it relies on Russian oil and is close to the Kremlin.
Other countries fear that a ban on oil would raise prices at the pump, while consumer prices are already soaring due to the war.
“We need to be very vigilant about market reactions,” an official told AFP on condition of anonymity.
“There are solutions and we will get there eventually, but we have to act with great care.”
– ‘Little effect’ –
Although Russia exports two-thirds of its oil to the EU, the United States has expressed doubts about an outright ban.
Treasury Secretary Janet Yellen warned it could have little impact on Russia as it would push up prices for its remaining exports.
EU energy ministers will discuss the ban during talks in Brussels on Monday, but they will not sign the decision.
This sixth package of anti-Russian measures will also target the country’s largest bank, Sberbank, which will be banned from the international Swift messaging system, diplomats said.
The EU had already banned imports of Russian coal, but Poland and the Baltic states also called for an oil embargo.
Gas imports from Russia will remain unaffected, with hugely dependent Germany promising to move away from Russian gas by mid-2024.
Europe’s largest economy’s reliance on Russian energy has been exposed as an Achilles’ heel as Western allies scramble to punish Russian President Vladimir Putin for his attack on Ukraine.
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