EU’s Ban on Russian Oil
- As part of the sixth package of sanctions since Russia’s invasion of Ukraine, the European Union member states on May 30 reached an agreement to ban 90% of Russian crude oil imports by the end of the year.
- The Russian economy is strongly reliant on energy exports, with the European Union paying Russia billions of dollars each month for crude and processed products.
- The EU wants to stop this large flood of funds, which, as Ukrainian President Volodymyr Zelensky has frequently stated, is comparable to Europeans funding Russia’s war.
- Since the invasion of Ukraine, the EU has been striving to reach an agreement on methods to economically harm Russia so that it is obliged to halt its military offensive.
- The most obvious solution was to stop buying Russian energy, but given European consumers’ reliance on Russian oil and gas, this proved difficult.
- The Russian economy is heavily dependent on energy exports, with the European Union paying billions of dollars per month for oil and processed products.
- The EU wants to halt this massive inflow of finances, which Ukrainian President Volodymyr Zelensky has compared to Europeans backing Russia’s war.
- Since the invasion of Ukraine, the EU has been working to find an agreement on how to economically damage Russia so that it will be forced to end its military campaign.
- The most obvious option was to stop buying Russian energy, but this proved difficult due to European consumers’ dependency on Russian oil and gas.
Why Exemption to Pipelines?
- The exemption for pipeline imports was granted on the basis that landlocked countries (Hungary, Czech Republic, and Slovakia) who are largely reliant on Russian pipeline oil do not have a ready option to transition to alternate supplies in the absence of ports.
- While Hungary receives 65 percent of its oil from Russia through pipeline, the Czech Republic imports 50 percent of its oil from Russia, and Slovakia imports 100 percent of its oil from Russia.
- Bulgaria is not a landlocked country, receiving 60% of its oil from Russia. However, its refineries are currently only capable of processing Russian crude.
Source The Hindu