Approval of the sixth sanctions package, supposed to halt Russian oil within the EU, appears to be dragging out due to disagreement among the union’s member states. Oil prices decline Tuesday morning.
Monday, President of the EU Commission Ursula von der Leyen met with Hungary’s Prime Minister, Viktor Orbán. | Photo: Hungarian Pm’s Press /Ritzau Scanpix
COPENHAGEN / BRUSSELS – Reaching agreement is dragging out among EU nations regarding the sanctions proposed last week, and which included a ban on Russian oil.
A number of countries continue to hold back their support for the deal due to concerns over security of supply, in particular, as well as the economic consequences.
Hungary is among the strongest opponents, and the country’s Prime Minister Viktor Orbán has criticized the time horizon for a European phase-out, which, according to EU Commission President Ursula von der Leyen, is supposed to take place before the turn of the year.
Tuesday morning, negotiations remain at a standstill after von der Leyen met directly with Orbán Monday. According to media Politico, negotiations did not get any closer to a deal. Ambassadors of the member countries are not expected to meet up again for new discussions before Wednesday.
According to news agency Reuters, the EU Commission considers offering Eastern European countries more money to upgrade their oil infrastructure in an attempt to get their support halting Russian oil supply.
Besides the import ban on Russian oil, part of the sixth sanctions package has proposed prohibiting European companies and tankers from carrying Russian oil. According to several media, however, it is uncertain whether this part of the package will be approved.
Complete ban
Last week, the EU Commission proposed a halt of all Russian oil within the next six months as well as petrol and other refined oil products before the year’s end.
“This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined. We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimizes the impact on global markets,” said von der Leyen at the launch last week.
However, the president also stressed that a phase-out was not likely to be an easy task as several member states are very dependent on Russian fossil fuels. Nonetheless, oil sanctions were the most efficient tool in the arsenal, said von der Leyen.
This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined. We will make sure that we phase out Russian oil in an orderly fashion
URSULA VON DER LEYEN, EU Commission President, last week
”We maximize pressure on Russia, while at the same time minimizing collateral damage to us and our partners around the globe,” said the president.
The Netherlands is the biggest European importer of oil from Russia due to Rotterdam’s status as a hub for Russian oil. Roughly a quarter of the oil that comes through the city’s port originates from Russia, writes analyst firm Jefferies.
Oil prices fall
Tuesday morning, oil prices continue the downward trajectory in the wake of the challenges with landing a sanctions deal.
Tuesday’s dive prolongs the biggest decline in oil prices since March after both Brent and WTI oil saw the biggest daily percentage fall Monday, according to news agency Marketwire.
