EU nears Russia oil sanctions agreement, with carve-out for pipelines
A new proposal may not go far enough for EU members to agree on
Zelenksyy Russian oil embargo push, blocking of its banks a ‘crucial message’: Bill Browder
Hermitage Capital CEO Bill Browder praises Zelenskyy’s call to introduce maximum sanctions on Russian oil and trade at the World Economic Forum in Davos.
European Union members are nearing a deal on sanctions against Russian oil, but EU officials may not sign off on it due to an exception for pipeline deliveries, according to a new report.
An earlier version of the EU’s sanctions proposal called for a "complete ban" of all Russian oil imports, but a new draft would temporarily allow oil to come through pipelines.
"European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline," the proposal says, according to Politico.
E.ON, Europe's largest operator of energy networks, rejected demands to shut down the Nord Stream 1 gas pipeline as part of sanctions against Russia for invading Ukraine, the company told Rheinische Post newspaper on Monday. (AP Photo/Dmitry Lovetsky / AP Newsroom)
An EU diplomat told the outlet that they hope "to have a political deal today." Still, it is up to EU leaders to agree and then the Council of the EU to approve it.
OIL PRICES REACT TO LOOMING EU BAN ON RUSSIAN OIL
On the one hand, the exemption for pipeline deliveries could turn off some European Union countries because it weakens the sanctions – especially since the exception does not have a clear endpoint, only saying "as soon as possible." On the other hand, it could entice landlocked countries like Hungary to join because it would allow them to continue to receive oil from Russia’s pipeline, which it relies on.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Hungary had previously blocked a ban on Russian oil because it would harm their economy.