Filenews 30 May 2022
European Union leaders are expected to agree at today's Summit that the new package of sanctions being prepared for Russia should also include an embargo on imports of Russian oil in retaliation for the invasion of Ukraine, but would exclude crude deliveries made by pipeline.
Earlier, the head of European diplomacy, Josep Borrell, had expressed optimism about reaching an agreement on the embargo on Russian oil. But as Reuters reports, European leaders, unable to agree on all the details regarding the embargo on Russian oil, will leave it for longer after the final agreement on the new sanctions package in Moscow.
"The European Council agrees that the sixth package of sanctions against Russia will cover crude oil as well as petroleum products, delivered by Russia to member states, with a temporary exception for crude oil delivered through pipelines," reads the latest draft, which was brought to the attention of the agency.
"The European Council therefore urges the Council to finalise and adopt it without delay, ensuring fair competition and a level playing field in the EU single market and solidarity between member states in the event of a sudden supply disruption," the draft states.
It adds that the 27 EU member states "will address the issue of the temporary exemption of crude oil delivered through pipelines as soon as possible".
At 5 p.m. the Summit
The Summit starts at 5 p.m. (Cyprus time) with the first topic being the situation in Ukraine. European leaders are expected to reiterate the EU's strong economic, political, humanitarian and military support to the country.
As the President of the European Council, Charles Michel, underlines in his letter of invitation to EU leaders, the most "pressing" issue is financial assistance to Ukraine to cover liquidity needs. According to a draft conclusions, the EU will provide the country with further emergency macrofinancial assistance in the form of loans and grants, up to €9 billion in 2022. However, it is not yet clear whether the leaders will give their final approval today, as the Commission will present the details on how to finance it in June.
The possible debate on sanctions on Russia
The European Council can also discuss the sixth package of sanctions against Russia, which includes the embargo on Russian oil.
One month after the presentation of the 6th sanctions package by the Commission, there has still been no agreement. The issue has been discussed with unabated intensity over the last 48 hours, at the level of the ambassadors of the Member States, who are also meeting this morning, in a last-ditch effort to find a consensual solution.
The proposal, which is on the table, concerns a total embargo until the end of the year on imports of Russian oil by sea (2/3 of the imports) and an exemption, at present, for imports of Russian oil through pipelines (1/3 of the imports) and in particular through the Russian pipeline 'Druzhba' which supplies Hungary, Slovakia and the Czech Republic. Today the European Council will be briefed on these talks, but the agreement at ambassador level is expected later this week, according to Commission circles.
The issue of energy at the summit table
Over dinner, the "27" EU leaders will discuss the issue of energy and high prices that hit households and businesses hard. The debate will focus on the financing of the REPowerEU project, for the gradual de-dependence on Russian fossil fuels, presented by the Commission on 18 May. "We need to accelerate our energy transition if we want to phase out our dependence on Russian fossil fuels as soon as possible. Building on our decisions at Versailles, we will discuss the best ways to move forward," Charles Michel says in his letter of invitation to the "27."
At the March Summit, the '27' called on the Commission to put forward proposals that effectively address the problem of excessive electricity prices while preserving the integrity of the single market." However, according to a diplomatic source, some member states do not consider REPowerEU to be responding to the pressing issue of energy prices. It is therefore likely that the issue of reforming the EU electricity market will be raised again, including the possibility of a cap on the price of energy and a platform for a common gas market in the EU. As a European official said, "we are asking the Commission to examine how price caps could be possible but in cooperation with international partners."
Food crisis and security
On the second day of the summit, European leaders will discuss the dramatic impact on global food security that Russia's military aggression is in danger of bringing. African Union President Maki Sal will participate in the discussion via teleconference.
Finally, European defence will be of concern to the "27" leaders, as Russia's war against Ukraine has further strengthened their ambition for a strong, coordinated European defence. The priority is for member states to coordinate their efforts to replenish stocks and build a European industrial base.
Source: iefimerida.gr
