The European Union on Monday launched preparations to impose sanctions on Russian oil, with possible exceptions for countries of concern, and warned that full compliance with Moscow’s proposed plan to receive gas payments in rubles would violate existing EU sanctions.
The European Commission is expected to propose a sixth package of European Union sanctions this week on Russia over its military operation in Ukraine, including a possible embargo on the purchase of Russian oil, a measure that would deprive Moscow of a significant revenue stream. But EU countries are still divided on that.
Russian gas supplies constitute 40 percent of the European Union’s needs, while Russian oil constitutes 26 percent of the bloc’s imports.
Officials said on Monday that in order to preserve the unity of the 27-nation bloc, the commission might offer Hungary and Slovakia an exemption or a long transition period, and the comprehensive ban is likely to be implemented gradually by the end of the year.
Hungary and Slovakia depend heavily on Russian crude. Hungary said it would oppose energy sanctions.
Other countries’ resistance to the oil embargo appeared to be weakening ahead of a meeting scheduled for Wednesday at which EU ambassadors will discuss the proposed sanctions.
Today, Monday, German Economy Minister Robert Habeck said: “We were able to reach a situation in which Germany can withstand an oil embargo.”
Austrian Climate and Energy Minister Leonor Goesler said Vienna would agree to oil sanctions if other countries agreed.
European Union countries have paid more than 47 billion euros ($4743 billion) to Russia for gas and oil since it began its operation in Ukraine on February 24, according to the Center for Research on Energy and Clean Air.
Gas Crisis Talks
At the meeting of European Union energy ministers today, the union sought to clarify its position on Russia’s demands that countries actually pay for gas in rubles, or face the possibility of losing their supplies.
Russia halted gas supplies to Bulgaria and Poland last week, after they refused to meet its demands for payment in rubles, raising fears that such a measure could include other countries later.
The European Commission said on Monday that full compliance with Russia’s proposed plan would breach existing EU sanctions on Russia, but promised more detailed guidance on what companies can do legally.
“Paying in rubles through the transfer mechanism operated by Russian public authorities and a second account designated for it at Gazprombank is a violation of sanctions and cannot be accepted,” EU Commissioner for Energy Kadri Simsun said at a press conference after the ministers’ meeting.
With many European companies facing a deadline to pay for gas later this month, EU countries urgently need to clarify whether companies can continue to buy fuel without violating EU sanctions on Russia.