Moscow pledges to find other importers for its oil soon after world’s largest trading bloc agree Partial embargo on Russian crude oil.
The European Union decided on Monday to ban most Russian oil imports by the end of the year, part of new measures aimed at punishing the Kremlin for unprovoked behavior. Invasion of Ukraine.
The move was hailed by EU foreign policy chief Josep Borrell as “a weakening of the [Russian President Vladimir] Putin’s war machine. “
It covers Russian oil entering the EU by sea, but exempted oil imports by pipeline after Hungary objected.
Part of the EU embargo covers Russian oil entering the bloc by sea, but exemptions have been made for imported oil by pipeline after Hungary objected.
Attila Kisbenedek | AFP | Getty Images
The EU’s long-delayed sixth set of sanctions against Russia, which requires ratification by all 27 member states, has not yet been formally ratified.
In response to these measures, Mikhail Ulyanov, the permanent representative of Russia to the Vienna International Organization, said that the oil ban had a negative impact on the EU.
“As she said yesterday, #Russia will find other importers,” Ulyanov tweeted, referring specifically to European Commission President Ursula von der Leyen. The Commission is the executive body of the European Union.
“It’s worth noting that now she contradicts her own statement yesterday. The rapid change in mindset shows that #EU is not in good shape,” he added.
The EU’s von der Leyen welcomed the EU’s agreement to impose oil sanctions on Russia. She said the policy would effectively cut about 90% of oil imports from Russia into the EU by the end of the year and return to the remaining 10% of pipeline oil soon.
About 36 percent of the EU’s oil imports come from Russia, a country that plays a pivotal role in the global oil market.
To be sure, Russia The third largest oil producer in the worldafter the United States and Saudi Arabia, is the world’s largest crude oil exporter. It is also a major producer and exporter of natural gas.
Ukrainian officials have repeatedly insisted that the EU imposes a total embargo on Russian oil and gas, and energy importers continue to raise prices PutinEveryday War Chest.
Estonian Prime Minister Kaya Karas on Tuesday called on the European Union to go further and discuss the prospect of a Russian gas embargo in the next round of sanctions. However, Austrian Chancellor Karl Nehammer abruptly rejected the idea, saying it would not be the subject of discussion in the next set of measures.
The split comes as Russia’s state-owned energy giant Gazprom completely cut off supply to Dutch gas trader GasTerra, while Denmark’s Orsted has warned it is also facing disruptions.
Oil prices rose Tuesday afternoon.
European Council President Charles Michel said the compromise on oil sanctions reaffirmed the EU’s unity in dealing with the onslaught of the Kremlin. Failure to strike a deal of any kind is thought to be likely to be seen as a victory for Putin.
Adi Imsirovic, senior fellow at the Oxford Institute for Energy Research, told CNBC’s “Squawk Box Europe” Tuesday.
Imsirovich said the EU decision paves the way for the EU and the United States to increase pressure on other energy importers such as India to take similar measures against Russian oil.
“It was not possible before because, for example, if Europe itself didn’t do it, it would be very difficult to ask India to drop imports. So, I think it’s very important from a political point of view,” he said.
India has dismissed criticism of its continued purchases of Russian energy after the Kremlin’s war in Ukraine.
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India, the world’s third-largest oil importer, has seen its crude oil imports from Russia climb steadily since Russia invaded Ukraine in late February. According to Reutersciting Refinitiv Eikon data.
Asia’s third-largest economy has dismissed criticism of its continued purchases of Russian energy following the Kremlin’s Ukraine war, saying an abrupt halt to Russian oil imports will ultimately hurt its consumers.
In addition, China has been seen quietly increasing its purchases of oil from Russia at a discount, Reuters reports, citing shipping data and unnamed oil traders. It appears to suggest that the world’s largest crude importer is filling the vacuum left by Western buyers cutting ties with Russia over Ukraine’s humanitarian crisis.
In addition to the EU’s oil sanctions, the EU agreed to take steps to remove Russia’s largest bank Sberbank from the SWIFT information system and ban three other state broadcasters.
Von der Leyen said EU companies were also banned from insuring and reinsuring Russian ships.
“Another point that I don’t think has been mentioned much, I think this package will almost certainly include a shipping insurance ban. I haven’t seen the details, but it will almost certainly be included,” Imsirovich said.
He estimates that about 95% of Russian oil transportation insurance is carried out in Europe, mainly in London. “So this actually affects not only Russian exports to Europe now, but also Russian exports elsewhere.”
The first five rounds of measures included restricting access to capital markets, freezing the assets of the Russian central bank, excluding Russian financial institutions from SWIFT, and banning imports of Russian coal and other commodities.