The EU is considering imposing a two-phase embargo on Russian oil

Some European Union leaders are pushing for an agreement that would ban oil shipping and temporarily allow deliveries via a main pipeline to give Hungary – which has no access to the sea – more time to adjust, according to Bloomberg. his post on Europeans’ efforts to reach an agreement on new sanctions against Russia.

EU governments discuss a plan with the European Council and the European Commission to exclude oil supplies via the Druzhba pipeline for a limited period, from a wider ban on oil deliveries to the bloc, the agency quoted sources familiar with the matter as saying.

The compromise will give Hungarian Prime Minister Viktor Orban time to sort out the technical details for the phasing out of supplies to his country, the same sources said.

Hungary has rejected a proposal that would allow it to become independent of Russian oil by 2024, almost two years longer than most of the other member states. As unanimity is required in EU decisions. As for sanctions, Hungary has effectively blocked the new sanctions package, which will also include restrictions on Russian banks, advisory services and real estate markets.

Budapest has indicated that at least 770m euros will be needed to reorganize its oil industry, along with investment in infrastructure in Croatia, and that an unspecified amount of additional funds will be needed to adjust to possible price increases.

The European Commission, as part of its broader strategy for decoupling from Russian fossil fuels, plans to commit up to € 2 billion to infrastructure investment needs for Member States, but even that has not convinced Hungary.

An alternative plan calls for the removal of oil-related measures from the sanctions package in order to continue negotiations with Hungary, one source said.