“It’s one of the very effective instruments still in the possession of the Western countries,” Dr Andrei Illarionov said.Īll of Russia’s oil supplies to the EU could not be redirected for sale to the east, and it is not clear if China and India would buy it and risk possible sanctions by the bloc. Putin’s former chief economic adviser has said that a ‘real embargo’ on energy supplies could end Russia’s conflict ‘within a month or two’. Many countries are still urging sanctions to go further, and target other assets, such as gold. Britain has previously estimated that sanctions have frozen more than 60 per cent of the Russian president’s war funds. It is not the only factor, however, in hitting Russia’s coffers. Last month, the EU’s chief of foreign affairs Josep Borrell admitted the bloc had paid Russia nearly €1bn (£850m) a day for energy supplies, including coal, oil and gas. Ukraine has said that Russian energy exports to Europe are funding Moscow’s war effort with millions of euros every day. How will the oil embargo hit Putin’s war chest?ĮU’s foreign policy chief, Josep Borrell has said the latest round of sanctions targeting Russian oil will “cripple Putin’s war machine”. There are also plans to accelerate work to help Ukraine move grain out of the country to global buyers via rail and truck with a Russian navy blockade preventing exports by sea. Leaders also backed the creation of an international fund to rebuild Ukraine after the war, with details to be decided later. The summit also brought political backing for a package of EU loans worth €9bn (£7.6bn), with a small component of grants to cover part of the interest, for Ukraine to keep its government going and pay wages for about two months. Russia’s biggest bank, Sberbank (SBMX.MM), is being cut from the SWIFT banking messaging system. The EU will bar three Russian state-owned broadcasters from distributing content in member countries. The remaining 10 percent will be temporarily exempt from the embargo so that landlocked Hungary – which had led opposition to the EU package – along with Slovakia and the Czech Republic, which are all connected to the southern leg of the pipeline, has access which it cannot easily replace.Įuropean Commission President Ursula von der Leyen said moving to “phase out our dependency on Russian gas, oil and coal as soon as possible” would require a new approach which would require saving energy, diversifying from fossil fuels and a “massive” investment in fossil fuels.ĮU leaders haven’t confirmed how long the embargo on Russian will last and have said only that it will be “temporary”. The embargo would encompass 90 per cent of all imports from Russia once Poland and Germany, which are also connected to the pipeline, stop buying it by the end of the year. Financing /mCKJkByFKu- Ursula von der Leyen May 30, 2022.
We agreed in Versailles to phase out our dependency on Russian gas, oil & coal as soon as possible.īut this requires a plan: This is #REPowerEU. Imports that come on ships representing two thirds of all the EU’s supplies from Russia will stop immediately, but the remaining third which flows from the Druzhba pipeline will not be affected, for now, after opposition from Hungary. The EU have agreed a plan that it says will slash 90 per cent of oil imports from Russia by the end of the year with more than two thirds of shipments covered immediately by the ban. What has the EU agreed and when will it be implemented? The Ukrainians are paying with their lives,” he said. The EU imports around 40 per cent of its gas and 27 per cent of its oil from Russia, so it is likely that petrol prices on the continent are likely to be hit in the short term, while countries find alternative sources.īut, as Latvia’s Prime Minister Krisjanis Karins, says: member countries should not get “bogged down” in their own personal interests. Prior to the war, some 18 per cent of Britain’s diesel requirements were met from Russia, but the UK has been gradually reducing imports after imposing its own restrictions on oil from Russia.ĭespite being less reliant on Russian oil than many EU countries, Britain is impacted by the current uncertainty pushing up price across interconnected markets.Įurope currently takes around two million barrels a day from Russia.Ĭrude oil prices are already up 60 per cent this year due to fears about disruptions in supplies from Russia. 'No more tax cuts' for struggling Britons this year, but businesses could still get giveaways 13 June, 2022 Ministers claim sugar and salt tax would be 'tone deaf' after throwing out food tsar's plan 13 June, 2022 Government's new 'cost of living' tsar is multi-millionaire venture capitalist 13 June, 2022
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