The EU chief executive on Wednesday proposed a phased oil embargo on Russia, sanctions on its top bank and banning Russian broadcasters from European airwaves in its toughest measures to punish Moscow for its war in Ukraine.
The EU’s sixth round of sanctions, if agreed by member states, would be a watershed for the world’s largest trading bloc, which relies on Russian oil and gas and must seek alternative supplies as energy prices rise. have been
Moscow’s reluctance to give in to sanctions that have hurt European Union economies has faded in recent weeks as Russia’s invasion of Ukraine sparked horrifying images of slaughter in towns and a renewed attack in the country’s east. I worried.
Reflecting widespread anger in the West over Russian President Vladimir Putin’s campaign – which Moscow calls a “special military operation” to defeat dangerous nationalists – the head of the EU executive said Moscow will face the consequences.
“Putin will have to pay a price, a high price for his brutal aggression,” European Commission President Ursula von der Leyen told the European Parliament in Strasbourg.
“Today, we will propose to ban all Russian oil from Europe,” he said as he applauded in the chamber.
The Commission’s measures include the supply of Russian crude oil within six months and the supply of refined products by the end of 2022. Von der Leyen pledged to reduce the impact on European economies.
Brent crude price rose nearly 3% to more than $108 a barrel in early trade.
If agreed, the sanctions would follow the United States and Britain, which have already imposed sanctions to cut one of the biggest income streams for the Russian economy, as the West draws its crude and petroleum products from Russia. buys more than half of
Von der Leyen said, “We are addressing our reliance on Russian oil. And let’s be clear, it will not be easy because some member countries are strongly dependent on Russian oil, but we just have to do it.”
Ambassadors from the EU’s 27 governments are widely expected to adopt the Commission’s resolutions earlier this week, allowing them to become law soon.
Hungary Tripwire?
However, Hungary indicated it could travel to the latest EU sanctions package.
Although it – along with Slovakia – would be given to wean itself from Russian oil by the end of 2023 because of its high dependence, Budapest said the proposal did not specify how its energy security would be guaranteed.
“We do not see any plans or guarantees on how a transition can be managed, based on existing proposals, and how Hungary’s energy security will be guaranteed,” said Hungarian government spokesman Zoltan Kovacs.
Simone Taglipietra of the Brussels-based Bruegel think tank said gradually imposing sanctions on Russian oil was risky.
“In the short term this could leave Russian revenues higher while imposing negative consequences for the EU and the global economy in terms of higher prices – not to mention the retaliatory risk (by Russia) on natural gas supplies,” he said. said.
In addition to oil, the latest round of sanctions proposes to hit Russia’s top lender, Sberbank, adding to a number of banks it has already cut off from the SWIFT messaging system.
“We hit the banks that are systemically important to the Russian financial system and Putin’s ability to destroy,” Von der Leyen said. “This will strengthen the complete isolation of the Russian financial sector from the global system.”
Sberbank did not immediately respond to a request for comment. The lender, which pulled out of nearly all of its European markets in March, said earlier that another round of sanctions would not have a significant impact on its operations.
Von der Leyen said more highly placed Russian military officials would face an EU asset freeze and travel restrictions, without giving names, and the EU would also ban European accountants, consultants and spin-doctors who work for Russian companies. work.
Diplomats said state-owned Russian broadcasters RTR-Planeta and R24 would be closed from European airwaves under the latest sanctions.
Von der Leyen also proposed a recovery plan for Ukraine after the conflict ended, saying that hundreds of billions of euros of funding was needed to rebuild the country.
“Ultimately, this will pave the way for Ukraine’s future inside the EU,” von der Leyen said.
(Additional reporting by Benoit van Overstraeten, Francesco Guarascio, John Chalmers, Sabine Siebold and Gabriela Beszynska Writing by Robin Emmot and John Chalmers; Editing by Nick McPhee)
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