The Heads of State and Government of the European Union have achieved at the stroke of midnight a “political agreement & rdquor; on the sixth round of sanctions against Russia, proposed almost a month ago by Brussels for the war in Ukraine and whose most controversial element has been the embargo on Russian oil. To circumvent the veto of the Hungarian Prime Minister’s plan, Viktor Orbán, and preserve unity of the Twenty-seven, European leaders have agreed to ease the embargo with a partial boycott to crude oil imported by sea -which accounts for two thirds of Russia’s imports and which will be applied from the end of the year and the exemption for the time being for oil that arrives by pipeline, which will allow Orban to escape the embargo.
“Agreement to prohibit the export of Russian oil to the EU. This immediately covers more than two-thirds of Russia’s oil imports, cutting off a huge source of funding for its war machine. Maximum pressure on Russia to end the war”, announced the President of the European Council, Charles Michel, on the approval of the sixth round of sanctions that also includes the exclusion of the Sberbank swift payment information exchange system, the largest Russian financial entity, the ban on broadcasting in the EU of three Russian state broadcasters involved in the Kremlin’s disinformation policy, as well as the inclusion on the sanctioned list of more responsible for war crimes in Ukraine.
It was last May 4 when the European Commission proposed a total and gradual oil veto and its derivatives coming from Russia, both by ship and by pipeline, with a one-year extension for Hungary and Slovakia, the two countries that feed on Russian crude through the Druzhba pipeline and that they do not have access to the sea. He then started a tug-of-war with Budapest that has not been resolved until tonight. Orbán not only demanded more money to adapt his infrastructures and refineries to oil from other countries, but also supply guarantees in case of problems. A pulse that has forced Brussels to gradually modulate and dilute his initial proposal to try to bring the agreement closer without breaking the unit of the twenty-seven.
Objective: political agreement
Both the European Commission and the French presidency of the EU had intensified negotiations in the last 48 hours to achieve the white smoke at this summit. After a first failed attempt on Sunday, the permanent ambassadors of the Twenty-seven achieved this Monday morning a “principle of agreement” on a text that has been slightly retouched to accommodate Orbán’s request for guarantees and the concerns of other partners in relation to the internal market. The agreement includes the commitment of the European Council on the sixth package of sanctions and the veto of oil and its derivatives that arrive from Russia to the Member States, “with a temporary exception for oil supplied by pipeline & rdquor ;.
It also asks the Council to finalize and adopt the agreement as soon as possible – on Wednesday the ambassadors’ process will go through -, which guarantees a functioning single market, fair competition and solidarity between the Member States in the event of “a sudden interruption of supply & rdquor ;. Also It has been added, compared to previous drafts, that in the event of a sudden interruption in supply, “emergency measures will be introduced to guarantee supply”, something that the Commission will monitor to guarantee security of supply and competitive competition.
The idea behind this formula, as diplomatic sources have explained, is to apply a embargo in two phases. In a first stage, the crude that arrives by sea would be blocked, which will make it possible to interrupt two thirds of Russian imports – a percentage that will increase above 90% by the end of the year once Germany and Poland apply their commitment not to import any more Russian oil – and, in a second, imports by pipeline that account for a third of imports and that will continue to flow although with the commitment to close the tap “as soon as possible”.
Hungary demands more guarantees
Upon arrival at the meeting Viktor Orban He warned that the offer on the table was insufficient, although he claimed to welcome the idea of excluding pipeline oil from the boycott. “It is a good approach but we need guarantees that in the event of an accident with the oil pipeline that crosses Hungary we must have the right to obtain Russian oil by other means & rdquor ;, he warned, insisting on his willingness to support sanctions as long as they include “solutions & rdquor; to guarantee your energy supply in case of problems. His words anticipated a complicated negotiation, as in the end it has been, although Orban will return to Budapest with his objectives fulfilled: he will be able to continue importing Russian oil through the pipeline, with no deadline at the moment and with the possibility of buying oil transported by ship in case of emergency.
As explained by the President of the European Commission, Ursula von der Leyen, although 10% of the oil that arrives by pipeline will remain pending, they will return to the exception “soon”. “The EU is united. We have agreed to more drastic sanctions against Russia. There will be an embargo on a large part of Russia’s oil imports & rdquor ;, the German chancellor celebrated with satisfaction, Olaf Scholz. “Russia has chosen to continue its war in Ukraine. As Europeans, united and in solidarity with the Ukrainian people, we are going to apply new sanctions. We have decided to cut off Russian oil imports by 90% by the end of 2022,” announced the french President, Emmanuel Macron. “The Spanish government is satisfied. It is progress. We maintain unity, which is fundamental. Unity is the most important thing at the moment, hurting Putin without destroying our economies,” Spanish government sources have celebrated.