The EU plans to invoke further sanctions on Russian oil on Wednesday as worrying developments in the Russia-Ukraine war led to a major shift in the EU’s view of its dependence on Russian oil.
The European Commission recommended a new set of sanctions targeting Russian oil exports, banks, state broadcasters, and army officers to add to the piling Western economic pressure on Russia in light of rising geopolitical tensions.
The oil export embargo, which would be a major setback for Russia, flagging a $1.8tr economy, would be phased in over six months.
The EU has been compelled to implement more aggressive energy measures by Russia’s unprovoked invasion of Ukraine and proof of war crimes.
However, imposing measures that could reduce, or eliminate, the Russian energy supply to the EU has proven to be a difficult issue for the EU. This is due to the region’s reliance on Russia for a variety of energy sources, notably oil.
Russian oil imports accounted for around 25% of the bloc’s crude purchases in 2020, according to the region’s statistics agency.
According to Reuters, EU Commission President Ursula von der Leyen suggested the sixth package of sanctions on Russia in a speech to the European Parliament on Wednesday, which includes cutting off Sberbank, the country’s main lender, from the SWIFT financial transfer system.
The ban had been a contentious issue inside the EU, but it gained traction after Germany backed the proposal.
The sanctions must be agreed upon by the 27 EU member states, and some, such as Hungary and Slovakia, want to be exempted from any ban on Russian oil imports as both countries are heavily reliant on Russian energy.
Russian natural gas, which is used to heat homes and produce energy across the EU, has yet to be targeted by the EU.
On Tuesday, President Vladimir Putin increased the economic stakes for Kyiv’s Western backers by declaring measures to halt the export of important raw materials.
Oil prices have risen 3% to $108 a barrel of brent crude on anticipated higher demand due to bans on Russian oil.
