The European Union has agreed to ban most Russian oil imports, a major step in its effort to punish Russia for its invasion of Ukraine. The embargo will cover seaborne imports of Russian crude oil, but will not include pipeline oil for now.
The embargo is expected to come into effect in six months for crude oil and in eight months for refined products. It will cover around 90% of Russian oil imports to the EU.
The decision was made after weeks of negotiations, with Hungary being the last holdout. Hungary had been demanding an exemption from the embargo, arguing that it would be too damaging to its economy. However, the EU agreed to provide Hungary with €750 million in aid to help it transition away from Russian oil.
The embargo is a major blow to Russia’s economy. Oil is Russia’s main export, and the embargo is expected to cut off billions of euros in revenue. The embargo is also likely to push up oil prices, which will benefit Russia in the short term.
However, the embargo is also a major risk for the EU. The bloc imports about 27% of its oil from Russia, and the embargo is likely to lead to higher energy prices in Europe. This could hurt businesses and consumers, and could also lead to inflation.
The EU is also concerned about the impact of the embargo on global energy markets. The bloc is trying to avoid a global oil shortage, which could have a devastating impact on the global economy.
The EU’s decision to ban Russian oil is a significant step in its effort to punish Russia for its invasion of Ukraine. The embargo is likely to have a major impact on Russia’s economy, but it is also a risk for the EU. The bloc is trying to find a balance between punishing Russia and avoiding a global energy crisis.
Here are some of the reactions to the EU’s decision:
- Ukrainian President Volodymyr Zelenskyy welcomed the decision, saying it was “a significant step towards victory”.
- Russian President Vladimir Putin said the embargo would be “a painful blow” to the EU, but that Russia would “find ways to compensate for the losses”.
- The International Energy Agency said the embargo would “tighten the screws” on Russia’s economy, but that it would also have a “significant impact” on global energy markets.
The EU’s decision to ban Russian oil is a major development in the ongoing war in Ukraine. The embargo is likely to have a significant impact on both Russia and the EU, and it remains to be seen how the markets will react.
