European Union members are expected to agree on an embargo on Russian crude oil imports as early as next week, officials say, in a move that will mark a rift among its members.
A similar measure has been under discussion for weeks, with the United States adding pressure on the group to end its role to stop funding Russia with its oil and gas payments.
The EU will continue to discuss the issue over the weekend, according to the New York Times, with the European Commission preparing a final proposal to present to EU ambassadors for approval. The ambassadors are due to meet on Wednesday next week, with final approval by the end of the week, anonymous EU officials told the New York Times.
There is no indication of how inclusive or complete the embargo would be, but it is clear that some kind of embargo is on the horizon.
The EU receives a quarter of its crude oil from Russia. Analysts suggest that if the EU imposes a total ban on crude oil, it will lead to a significant financial blow and that Russia may not be able to find enough willing buyers to take the oil, which is usually directed to the EU. Such a financial blow could hamper Russian President Vladimir Putin’s ability to continue funding the war in Ukraine.
There are also long-term consequences. If Russia fails to find a way out of all its crude oil following the EU’s crude oil embargo, Russia could be forced to cut production, a production that may not be able to return online.
By Julian Geiger for Oilprice.com
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