The European Union (EU) is making ready “smart sanctions” towards Russian oil imports, The Times reported on Monday, citing the European Fee’s government vice chairman, Valdis Dombrovskis.
“We are working on a sixth sanctions package and one of the issues we are considering is some form of an oil embargo. When we are imposing sanctions, we need to do so in a way that maximizes pressure on Russia while minimizing collateral damage on ourselves,” Mr. Dombrovskis advised The Times.
He mentioned that exact particulars of the oil sanctions had not but been agreed however may embody a gradual phasing-out of Russian oil or imposing tariffs on exports past a sure worth cap, the newspaper reported.
Russia is Europe’s greatest oil provider, offering 26% of EU imported oil in 2020. Europe will get roughly a 3rd of its gross out there power from oil and petroleum merchandise, in sectors from transportation to chemical substances manufacturing.
Ukraine and a few EU states, together with Poland and Lithuania, desire a ban on Russian oil and fuel, whereas Germany and Hungary are opposed to a right away oil embargo.
Oil and oil merchandise made up greater than a 3rd of Moscow’s export revenues final yr. At present, Europe spends round $450 million per day on Russian crude oil and refined merchandise, round $400 million per day for fuel, and roughly $25 million for coal, in accordance to think-tank Bruegel. — Reuters