EU’s Russia sanctions effort slows over oil dependency

BRUSSELS –

On Monday, the European Union’s attempts to impose new sanctions on Russia in response to the war in Ukraine seemed to have stalled as a small number of countries continued to resist a ban on Russian oil imports.

Five rounds of sanctions have been imposed on Moscow since Russia invaded Ukraine in February 24th. Russian President Vladimir Putin, top Russian officials, over 350 legislators, and pro-Kremlin Oligarchs were all hit with asset freezes, travel bans, and more than 350 others. Russian banks, transport and alleged propaganda outlets were all targeted.

The past could have taken many years. It was done in three months. This is a remarkable speed for the bloc. However, limiting Russia’s oil income through reducing EU dependence on Russian oil and Russian gas supplies is proving to be a more difficult problem.

On May 4, the European Commission, the EU’s executive branch proposed a sixth set of sanctions, which included a ban on Russian oil imports. European Commission President Ursula von der Leyen conceded at the time that securing the agreement of all “will not be easy.”

Hungary, one of the EU’s landlocked countries, is heavily dependent on Russian oil. Bulgaria has its reservations as well. Hungary receives more than 60% of its oil and 85% its natural gas from Russia.

“Unhappily, today it has not been possible to reach an agreement” to end the oil stalemate, EU foreign policy chief Josep Borrell saidAfter chairing a meeting in Brussels of the bloc’s foreign minsters.

Borrell is the problem said, “was technically too complicated, and it was not possible to reach a political decision.” He saidHe could not foresee how long it would take to break the deadlock. saidThe EU ambassadors will continue to work on this issue in the days ahead.

Dmytro Kuleba (Ukraine Foreign Minister) was disappointed by the delay.

“We understand why it is not happening,” he told reporters as he left the meeting. “But time is running out, because every day Russia keeps making money” by selling oil to Europe.

Putin’s relationship to Viktor Orban, the Hungarian Prime minister, is muddying the waters. Orban is widely believed to be one the closest European allies of the Russian leader. Orban only reluctantly supported EU sanctions that included a phased in embargo on Russian coal.

Orban, who took office in 2010, has increased Hungary’s dependence on Russian energy. He claims that his country’s geopolitical and energy infrastructure makes a Russian oil shut down impossible. His EU partners have divergent views on what is driving Orban’s reluctance towards Russian oil.

“The whole union is being held hostage by one member state,” Lithuanian Foreign Minister Gabrielius Landsbergis said. He said the European Commission’s proposal offered members a phaseout of Russian oil until Dec 31, 2024, and that “everybody expected that this would be enough.”

But his Irish counterpart, Simon Coveney, acknowledged that “these are difficult, difficult issues for some countries,” and he added: “Let’s not focus on obstacles and negatives today.”

Coveney also has a dual role. said, “we need to get on and do this. We need to send a very clear signal to the Kremlin and to Moscow that the cost of their continuing war in Ukraine, which is completely unjustifiable, will continue to increase.”

Hungary is the opposition’s most vocal member for now.

Officials saidOrban seems to be looking for EU money to invest in energy infrastructure. Any compromise will likely be reached only in his negotiations with von der Leyen, and not between ministers.

The EU’s unity in sanctions is at an end, as the oil standoff raises doubts. The task of focusing on Russia’s oil sector, which is dependent on many other EU countries, will likely prove to be more difficult.

Despite this new delay, Annalena Baerbock, German Foreign Minister, remained positive.

“In the coming days we will reach a common result — I am very confident about that,” she said.

Borrell confirmed that a political deal was reached for a fourth tranche to be used to supply weapons to Ukraine. When it is officially adopted, it will bring the total amount available for the purchase and support of weapons to 2 billion euros ($2.1billion).

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