Filenews 4 May 2022
The European Commission is proposing sanctions on Russia's oil exports over its invasion of Ukraine. The new package was presented today to the European Parliament by the President of the Commission.
The sixth package of sanctions against Russia was announced by European Commission President Ursula von der Leyen speaking at the European Parliament plenary in Strasbourg. According to the President of the Commission, this sixth package will include sanctions against high-ranking Russian soldiers who have committed war crimes in Ukraine, sanctions against major Russian banks such as the exit from Sberbank's SWIFT system, a ban on broadcasting in three major Russian state broadcasters in any form (internet, mobile applications, etc.) and the phasing out of the import of Russian oil. It is noteworthy that among the Commission's proposals for sanctions as far as persons are concerned, the leadership of the Russian Orthodox Church is included, especially Patriarch Cyril.
"We will ensure that we phase out Russian oil in a neat manner, in a way that allows us and our partners to secure alternative supply routes and minimise the impact on global markets ... we will phase out Russia's supply of crude oil within 6 months and oil refining products by the end of the year," said President von der Leyen.
Ursula von der Leyen also announced an "ambitious recovery package" for Ukraine, designed like post-coronavirus recovery plans for EU member states, with reforms and milestones to unlock huge funds needed and support Ukraine's path towards the EU.
The path to the proposals
The measure will be part of the new thunder of sanctions that Brussels is expected to announce, after weeks of intensive negotiations, as several of the 27 member states raised objections due to the impact of this decision on their economies.
Initially, Germany resisted an embargo on Russian oil, despite criticism from Ukraine. But Berlin is now in favour of the measure, having been able to find alternative sources of crude supply.
German vice-chancellor and economy minister Robert Habeck said last week that his country had reduced its oil supply from Russia, which made up 35% of the total quantity before the outbreak of war, to 12% of imports in just eight weeks.
The invasion of Ukraine prompted the EU to reconsider its dependence on Russian energy, exports of enormous value to the government of Vladimir Putin.
The 27 imported €44 billion worth of fossil fuels from Russia since the Russian army began its invasion of Ukrainian territory, according to data from the Centre for Research on Energy and Clean Air (CREA). According to estimates by the Bruegel Study Center, Russian oil consumed daily in Europe is worth $450 million and partly finances the war.
The imposition of an embargo on Russian crude follows the imposition of a ban on Russian coal, as part of the fifth round of sanctions. The end to coal imports from Russia is expected to be completed in August.
The U.S. imposed an embargo on all fossil fuel imports from Russia as early as March, at the start of the war. However, these imports covered a small part of the country's needs anyway, especially in comparison with the EU.
According to German agency sources, exemptions from the embargo are only foreseen for Hungary and Slovakia. It is also characteristic that the head of the Commission does not mention any exemption from the plan to impose an embargo on Russian oil.
As part of the sixth sanctions package, Sberbank, Russia's largest bank, will be subject to punitive measures, while two other banks and tv stations that Brussels says are spreading disinformation about the war will be targeted.
Banks added to the blacklist will be excluded from the SWIFT international interbank communication system.
For the sanctions to take effect, the unanimous approval of the 27 is required. Permanent representatives are expected to start consultations today. If there are no objections from any capital, the measures will be implemented within days.
