Germany blocks Russian coal sanctions in early EU consultations

In the early stages of drafting sanctions against Moscow, an idea was gaining traction in Brussels, with a ban on Russian coal imports until Germany, the European Union’s largest economy, blocked it, two sources told Reuters.

Before Russia invaded Ukraine, while mobilizing troops, EU policymakers began working on new sanctions in December and presented a first list of possible measures in EU countries in January.

The move avoided most energy imports due to the EU’s dependence on Russian fossil fuels, especially gas and oil. But it included a carbon ban, two European diplomats familiar with the plan told Reuters on condition of anonymity.

The aim was to show Moscow that the EU was talking seriously about energy sanctions, which are the most divisive because they directly hit the EU economy as well as the Kremlin, said one of the officials.

The measure would also be in line with EU climate policy, which has long targeted coal as one of the most polluting energy sources to be phased out.

But Germany, the EU country most dependent on coal imported from Russia, opposed it, officials said.

The German Permanent Mission to the EU, which is directly handling the negotiations on EU sanctions, declined to comment.

When the first round of sanctions was approved on February 24, the day Russia launched the invasion it describes as a “special military operation,” there were no signs of a carbon ban.

He was also absent from three consecutive rounds of EU sanctions targeting Russian banks, oligarchs, steel and defense.

As the EU moves towards securing alternative energy supplies, including through a US gas deal, Germany could change its position.

The German Ministry of Economy, through Robert Hubeck, said on Friday that Berlin had reduced its dependence on Russian coal and hoped to stop all coal imports by the autumn.

EU leaders have also discussed banning Russian oil, but countries, including Germany, have criticized the idea, and opposition to cutting off Russian gas imports, which cover about 40% of EU needs, is even less popular. said officials.

In 2020, Berlin was by far the largest EU importer of coal from Moscow, especially thermal coal used to generate electricity, according to data from the EU think tank Bruegel based on Eurostat statistics.

Sources said the idea of ​​banning coal was in its early stages when Germany blocked it. There was no official document detailing the import restrictions, but the issue had become “clear” in Germany, a source said.

In bilateral talks that followed, Germany said it could not support the plan, officials said.

“It was not a clear veto,” a diplomat from Berlin said, “but that was enough to keep it out of the proposed sanctions package.”

Source: Capital

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