Poland urges EU to slap sanctions on Russian oil and gas

May 2, 2022

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BRUSSELS –

On Monday, Poland called on its European Union partners to unite to impose severe sanctions on Russia’s oil- and natural gas sector over the conflict in Ukraine. They also urged them not to succumb to Russian pressure to pay for their gas using Russian rubles.

This appeal came at a time when EU ministers met to discuss their responses to Russia’s decision last Wednesday to reduce gas supplies to Poland and Bulgaria. Gazprom, the energy giant, says that both countries didn’t pay their April bills.

“We will ask for sanctions to be taken immediately against Russian oil & gas. This is the next and most urgent and absolute step,” Anna Moskwa, Polish Climate and Environment Minister, said. said. “We already have coal. It’s now that oil is available, and the second step is to obtain gas. Take them all together is the best option.

Since Moscow inflicted the invasion of Ukraine in February, the EU has hit Russian officials and oligarchs as well as banks, companies, and other organizations with a series of sanctions. The sixth round of sanctions could be announced by the commission this week, possibly including oil restrictions.

The member countries would need to approve the measures, which could take several hours.

Gazprom, Russia’s energy giant, cut supplies to Poland and Bulgaria last week in a move that was branded as “blackmail” by Europe. It was done in response to Russian President Vladimir Putin saidRussia’s currency, rubles, must be used to pay for gas from “unfriendly” countries.

As with most EU countries, Bulgarian and Polish have declined to do so. Gazprom bills will be due again on May 20, and the bloc fears that Russia could turn off even more taps. Russia rejects claims of blackmail.

Ministers were informed by both countries that there was no immediate supply threat to consumers or the industry.

Kadri Simonson, EU Energy Commissioner, warned Gazprom that their actions “clearly showed that they were not reliable suppliers.” This means that all member states need to have plans in place to disrupt full supply.

Around 40% of EU’s gas imports come from Russia. Some member countries, including Slovakia and Hungary, are more dependent than others on Russian supplies. There is support for the gradual phasing-in of an oil embargo.

Germany believes it can cope with a cutoff in Russian oil supplies. Robert Habeck, Economy Minister saidRussian oil now accounts to 12% of total imports, a drop of 35% from before the war. Most of this goes to the Schwedt refinery in Berlin.

“Germany does not oppose an oil ban from Russia.” Habeck stated that although it was a burden, he said that he was ready to take on the task. He saidIt would take a few weeks or months longer to find oil transporting vessels and to prepare harbors and pipelines.

He said, “Time is useful, but I believe other countries have greater problems. As I have asked for solidarity and understanding of the German situation I also have the ability to understand the more difficult situation for other nations.” said.

Monday’s meeting was focused on securing gas supplies. Putin’s demand that Russian companies pay for gas in rubles was not accepted. Nearly 97% of European contracts were concluded in dollars or euros.

The EU’s executive arm, the European Commission has warned companies that they will be subject to EU sanctions if they agree to convert rubles from euros via two accounts at Gazprombank.

Barbara Pompili (French Ecological Transition Minister), who holds the rotating presidency of the EU until the end next month. saidAll countries agreed to “implement the sanctions and adhere to the contracts.” The contracts clearly state that payment must be made in euros.

Despite the pressure, Europe still has some leverage in this dispute. It pays Russia US$400,000,000 per day for natural gas. This is a substantial amount that would put a dent in Moscow’s bank accounts if they decide to complete the cutoff.

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This report was contributed by Frank Jordans from Berlin and Mike Corder from The Hague