Hungary in particular has opposed the ban on oil imports. About 60 percent of Hungarian oil comes from Russia via the Druzhba oil pipeline.
European Union seems to be concluding a compromise on a ban on imports of Russian oil. According to preliminary data, the EU intends to ban the import of Russian oil by sea, but oil should continue to be imported by pipeline, the news agency reported. Bloomberg says.
The Commission sent a proposal for new sanctions to EU leaders over the weekend. According to the proposal, imports of Russian crude oil by sea would stop in six months and imports of refined petroleum products in eight months.
Under the Commission’s proposal, Bulgaria and Croatia would be given more time to withdraw from Russian oil products.
In addition, the proposal would continue to ban the export of Russian oil within the EU. Russian crude Urals oil is currently about 30 percent cheaper than North Sea Brent oil. Thus, those using Urals oil gain a significant competitive advantage over their competitors using more expensive grades of oil.
Sanctioning decisions require the unanimity of EU member states. Hungary in particular has opposed the ban on oil imports. About 60 percent of Hungarian oil comes from Russia via the Druzhba oil pipeline.
The EU has decided on a number of sanctions against Russia since the country invaded Ukraine in late February. However, sanctions decisions on Russian oil and gas imports have stalled, as many Eastern and Central European countries are dependent on Russian energy.
EU leaders will convene an extraordinary summit in Brussels on Monday and Tuesday. The situation in Ukraine is on the agenda. The meeting is expected to agree on some € 9 billion in aid to Ukraine. In addition to supporting Ukraine, EU leaders will discuss energy issues, Europe’s common defense and food security.
If the EU stops importing Russian oil by sea in the coming months, the decision is unlikely to have a significant impact on the Finnish oil refiner Neste. Neste has previously said it will stop using Russian oil by the end of July.
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