The European Commission has proposed its toughest sanctions against Russia, including a phased oil embargo, as part of a sixth round of retaliatory measures following Moscow’s invasion of Ukraine.
European Commission President Ursula von der Leyen said on Wednesday the embargo “will be a complete import ban on Russian oil, seaborne and pipeline, crude and refined”, that will take place in stages to give states time to find alternative energy sources.
In order for the proposal to be approved, it will need the support of all member states. Some countries within the 27-member bloc have expressed their opposition to an all-out embargo.
“Today we are addressing our dependence on Russian oil, and let’s be clear, it won’t be easy,” von der Leyen told the European Parliament in Strasbourg.
“Some member states are strongly dependent on Russian oil, but we simply have to do it,” she added.
Envoys from European Union countries have not yet reached an agreement, but discussions are expected to resume on Thursday.
Here is what you need to know about the proposed embargo:
What’s in the EU plan?
The European Commission is seeking to phase out supplies of Russian crude oil within six months and refined products by the end of 2022.
Under the proposal, Hungary and Slovakia could be granted a longer period to adapt to the embargo, until the end of 2023.
Measures include the ban in a month’s time of all shipping, brokerage, insurance and financing services offered by EU companies for the transport of Russian oil worldwide, an EU source told the news agency Reuters.
The ban would apply to Russian exports of oil worldwide, potentially affecting Moscow’s ability to find alternative buyers after the EU stops buying Russian oil.
The EU’s chief executive also proposed adding Russia’s top bank, Sberbank, and two other financial institutions, to a list of several banks already cut off from the SWIFT messaging system.
If agreed, the embargo would follow the United States and the United Kingdom, which have already imposed bans in an attempt to cut one of the largest income streams for the Russian economy.
Ambassadors from the EU’s 27 governments are widely expected to adopt the proposal as early as this week, allowing it to become law soon after.
A similar embargo on Russian coal, imposed by the EU in April, took immediate effect for the spot market, and had a four-month wind-down period for existing contracts.
Kremlin spokesman Dmitry Peskov said on Wednesday that Russia has been looking into various options as it braces for an EU oil embargo.
Details later...
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