European leaders reached an agreement on Monday to introduce a ban on the import of Russian oil. In the first instance, it concerns an embargo on oil imported by sea, which will immediately ban two-thirds of all Russian oil. An additional Polish-German import ban will take all together more than 90 percent of Russian oil from the market. Oil supplied via the Druzhba pipeline will remain outside the boycott for the time being. On Wednesday, the ambassadors of the member states will discuss the details.
Read all about the war in Ukraine in our file.
It was European Council President Charles Michel who confirmed the agreement around 11.45 pm. According to him, the embargo “cuts off a major source of funding from the Russian war machine”. In this way, Europe is putting maximum pressure on Russia to end the war in Ukraine, Michel said.
It had been clear for several days that the EU would be working on two parallel avenues to circumvent Hungary’s veto against an embargo on Russian oil. Perhaps by the end of the year, all oil that is currently transported by sea will be banned. In addition, Poland and Germany commit to no longer importing oil through pipelines. In this way, more than 90 percent of current imports would be banned from the European market.
Hungary and Slovakia
Hungary and Slovakia will be allowed to import Russian oil for the time being via the large Druzhba pipeline. Another solution would have been found for the Czech Republic, the third country that reported major supply problems with a total ban on Russian oil.
In any case, the ambassadors of the 27 member states will meet on Wednesday to discuss the details of the political agreement. It should then become clear when exactly the embargo will come into effect and whether Budapest and Bratislava will indeed receive an 18-month transition period, as suggested earlier in the day.
In the context of the oil embargo, the leaders also guarantee that the ‘level playing field’ in the European internal market will be maintained. Belgium was one of the countries that feared unfair competition – especially for the port of Antwerp – if Germany too could continue to obtain cheaper Russian oil via the Druzhba pipeline.
Other measures
The (partial) oil embargo is part of the sixth sanctions package against Russia that the Commission put on the table at the beginning of May in response to the war in Ukraine. In addition to the embargo, the other measures in that package also received the green light from European leaders on Monday evening. This means that Sberbank, Russia’s largest bank, and two other Russian financial institutions will be disconnected from the international payment system Swift. Three additional Russian state channels will no longer be seen or read in Europe, and some high-ranking military personnel involved in the Butya massacre and the siege of Mariupol will be sanctioned.
European leaders also decided to provide Ukraine with EUR 9 billion in aid. It would be grants, rather than loans as proposed by the Commission.
The first day of the European summit has not yet come to an end with the agreement on the sanctions package. The leaders are currently still exchanging views on the energy market. Among other things, the introduction of a price ceiling for natural gas, via an import levy, is on the table.
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