The European Commission has prepared sanctions against Russian oil as the war in Ukraine drags on. However, Slovakia and Hungary want some exceptions.
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The European Union is approaching a new round of sanctions against Moscow, which is likely to include an embargo on Russian oil imports.
But the Brussels-based institution must first resolve the division between member states, with two EU countries seeking exceptions due to their heavy dependence on Russian hydrocarbons.
Russia’s unprovoked invasion of Ukraine and evidence of war crimes have prompted the EU to take bolder steps on energy sanctions. But imposing measures that could reduce or completely reduce Russia’s energy supplies to the EU was a complex task for the bloc.
This is because the region relies on Russia for several energy sources, including oil. In 2020, Russian oil imports account for about 25 percent of the bloc’s crude oil purchases, according to the region’s statistical office.
“It would be good if everyone was on board, but if that means a delay [oil sanctions] it would not be good for everyone then, “said an EU spokesman, who declined to be named due to the sensitivity of the talks, he told CNBC on Tuesday.
The European Commission, the EU’s executive, is expected to present a proposal for new oil sanctions later Tuesday or Wednesday morning. However, Slovakia and Hungary want exceptions.
Hungarian Foreign Minister Peter Siarto said on Tuesday that his country would not support sanctions that would make it impossible to receive oil from Russia, Reuters reported.
Hungary is skeptical about imposing energy sanctions on the Kremlin. The country and its nationalist leader, Viktor Orban, are considered to have warmer relations with Moscow than other European nations.
Their close ties were highlighted during the coronavirus pandemic, for example. Hungary became the first EU country to buy a Russian vaccine against Covid, although it was not approved by European regulators.
There were also trade and energy deals. Over the last decade, Hungary has increased its share of Russian natural gas imports from 9.070 million cubic meters in 2010 to a high 17.715 million cubic meters in 2019, according to Eurostat.
Not immediate approval
Following the European Commission’s presentation of a new package of sanctions against Russia, Member States must approve them unanimously.
It is possible that the agreement on the sixth round of EU sanctions will take two separate meetings between European ambassadors. The first discussions are on Wednesday morning.
The new set of measures comes after Russia’s state energy company Gazprom cut off natural gas flows to two EU countries (Poland and Bulgaria) last week, raising fears that other EU countries would experience similar problems.
“This clearly shows that they are not reliable suppliers and that means that all member states must have plans for a complete shutdown,” Kadri Simson, EU energy commissioner, told a news conference on Monday.
“This is an unjustified breach of existing treaties and a warning that each Member State may be next,” she added.
In this context, the bloc is vying to find alternative energy suppliers in time for next winter. The commission’s idea is for at least 80% of Europe’s natural gas storage facilities to be filled by November, and in the meantime redirects some flows in the bloc in support of Poland and Bulgaria.
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