European Union leaders, on Monday, agreed in principle to cut 90 per cent of oil imports from Russia by the end of this year, after reaching a compromise deal with Hungary, Al Jazeera reported.
With this agreement, a vital source of funding for Moscow’s invasion of Ukraine will be cut off, the European leaders believe.
The 27-nation organisation has spent weeks haggling over a complete ban on Russian oil but encountered stubborn resistance from Hungarian Prime Minister Viktor Orban who said an embargo would destroy his country’s economy.
At a meeting in Brussels on Monday, a compromise deal was reached to exempt deliveries arriving in Europe by the Druzhba pipeline.
“Agreement to ban export of Russian oil to the EU. This immediately covers more than two thirds of oil imports from Russia, cutting a huge source of financing for its war machine,” European Council chief Charles Michel said in a tweet at the end of the first day of a two-day leaders’ summit.
“Maximum pressure on Russia to end the war,” Mr Michel added.
The head of the European Commission, Ursula von der Leyen, said the move “will effectively cut around 90 per cent of oil imports from Russia to the EU by the end of the year” when Germany and Poland have promised to end deliveries via pipeline.
Two-thirds of the Russian oil imported into the EU is delivered by tanker and one third by the Druzhba pipeline. The embargo would reach 90 per cent after Poland and Germany, which are also connected to the pipeline, stop taking delivery of Russian oil by the end of the year.
The remaining 10 per cent will be temporarily exempt from sanctions so that Hungary, Slovakia and the Czech Republic, which are all connected to the southern leg of the pipeline, continue to have access to the fuel they cannot easily replace.
“Russia has chosen to continue its war in Ukraine. Tonight, as Europeans, united and in solidarity with the Ukrainian people, we are taking new decisive sanctions,” French President Emmanuel Macron tweeted.
The compromise means other measures can also take effect, including disconnecting Russia’s biggest bank, Sberbank, from the global SWIFT system, banning three state broadcasters, and blacklisting individuals blamed for war crimes.
However, Volodymyr Zelenskyy of Ukraine had criticised the EU in a video address to the summit for being too soft on Moscow despite several sanctions the organisation had placed on Russia.
“Why are you dependent on Russia, on their pressure, and not vice-versa? Russia must be dependent on you. Why can Russia still earn almost a billion euros a day by selling energy?” Al Jazeera quoted Zelenskyy as saying.
While the EU’s decision will impact the Russian oil sales, Moscow has already started focussing its oil sales eastwards with China and India buying more Russian oil than before the Ukrainian war started.
