Europe will consider joining a US-led Russian oil embargo this week as the West looks for new ways to punish President Vladimir Putin for waging the devastating war in Ukraine.
EU leaders will discuss whether to dump what is by far the biggest supplier of oil to the region, having already pledged to reduce Russian natural gas use by 66% this year.
The meeting next Thursday (24) will have US President Joe Biden, who is visiting Europe for EU, NATO and G7 summits.
The European Union’s top diplomat said the bloc was ready to impose more sanctions on Russia, but that no decision was taken at last Monday’s meeting, where EU foreign ministers discussed whether to specifically target the energy issue.
“Today was not a day to make decisions in this area, so no decisions were taken, but this and other possible measures were submitted for consideration by ministers,” EU foreign policy chief Josep Borrell told reporters.
The issue of Russian energy imports was raised by several member states and “there was an interesting exchange of views, information on this,” he added.
Russia is the world’s second-largest oil exporter, behind Saudi Arabia, and despite the chilling effect of unprecedented Western financial sanctions and an embargo announced by the US and UK, it continues to earn hundreds of millions of dollars a day. with energy exports.
“I think it’s inevitable to start talking about the energy sector. And we can definitely talk about oil, because it’s the biggest revenue in the Russian budget,” Lithuanian Foreign Minister Gabrielius Landsbergis said as he arrived in Brussels for Monday’s talks.
Other EU states support the idea of hitting Russia’s most valuable asset with sanctions.
“Looking at the extent of the destruction in Ukraine right now, it is very difficult – in my opinion – to argue that we should not go into the energy sector, particularly oil and coal, in terms of disrupting normal trade in the country,” the minister of affairs said. Foreign Affairs of Ireland, Simon Coveney.
Currently, the European Union depends on Russia for around 40% of its natural gas. Russia also supplies about 27% of oil imports and 46% of coal imports.
What should Germany do?
Earlier this month, EU leaders said the bloc could not yet join the United States in banning Russian oil, because of the impact it would have on households and industries already facing record prices.
Instead, they said they would work towards a 2027 deadline to end the bloc’s dependence on Russian energy.
There is also a risk that Russia could retaliate by restricting natural gas exports. Deputy Prime Minister Alexander Novak said this month that Moscow could cut off gas supplies to Germany via the Nord Stream 1 pipeline, in retribution for Berlin blocking the new Nord Stream 2 pipeline project.
Still, political opinion may be hardening in Europe as Russia intensifies its attacks on Ukraine’s cities, killing hundreds of civilians and forcing millions to flee their homes.
Much will come down to countries like Germany, Russia’s biggest energy consumer in Europe, as well as others that buy a lot of Russian gas, like Hungary and Italy.
German Foreign Minister Annalena Baerbock said the country is “working at full speed” to end its dependence on Russia but, like some other EU countries, cannot stop buying Russian oil overnight. the other.
“If we could, we would do it automatically,” she said.
Even without an EU embargo — and any potential Russian counterattack — the world is facing the biggest shock to energy supplies in decades, according to the International Energy Agency.
The institution said last week that Russia could be forced to cut crude oil production by 30% from next month due to falling demand.
Canada, the United States, the United Kingdom and Australia have already banned Russian oil imports, affecting around 13% of Russian exports. And measures by major oil companies and global banks to stop trading with Moscow after the invasion are forcing Russia to offer its oil at a deep discount.
The Paris-based IEA, which monitors energy supplies to the world’s major developed economies, said Russian production could fall by 3 million barrels a day.
“The implications of a potential loss of Russian oil exports to global markets cannot be underestimated,” the IEA said in its monthly report.
— Arnaud Siad and Alex Hardie contributed to this story.
Source: CNN Brasil
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