Hungary objects to proposed EU ban on Russian oil imports
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Despite Ursula von der Leyen's statement that crude oil is to be banned in the EU within six months, Hungary and Slovakia showcased a stern opposition.
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European Commission President Ursula von der Leyen.
After proposing a ban on Russian oil imports to the EU in order to ensure Vladimir Putin pays a "high price for his barbaric aggression" in Ukraine, European Commission President Ursula von der Leyen was met with immediate opposition from Hungary.
Ursula von der Leyen suggested that Russian crude oil be banned within six months, and refined products by the end of the year, in order to stymie Putin's war plans.
Member states are debating a potential sixth package of sanctions in Brussels, but in a speech on Wednesday, Von Der Leyen said Russian oil flows have to cease, despite reservations in certain capitals.
“Let us be clear: it will not be easy,” Von der Leyen told the European parliament. “Some member states are strongly dependent on Russian oil. But we simply have to work on it. We now propose a ban on Russian oil. This will be a complete import ban on all Russian oil, seaborne, and pipeline, crude and refined.
“We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimizes the impact on global markets.”
Since the beginning of the war in Ukraine, the NGO Europe Beyond Coal concluded that the EU has spent about €21bn ($22.3bn) worth of Russian oil.
Russian imports account for 25% of EU oil imports and are a major source of cash for the Kremlin, but the extent of reliance varies, and Slovakian and Hungarian ministers have already stated that they will seek exclusions from the measures.
No alternative to Russian oil?
A spokesperson for Hungary’s prime minister, Viktor Orbán, said there appeared to be “no plan nor guarantees” on smoothly switching from Russian oil in the proposal.
Péter Szijjártó, the foreign minister, stated on Facebook, "In its current shape, the Brussels sanctions package cannot be accepted; we cannot vote responsibly for it." Hungary could only agree to these penalties if crude oil pipeline shipments were exempted from the limitations. Hungary's energy security may then be ensured. It can't now."
Slovakia had been seeking a longer transition period for its transition away from Russian oil but has only been given one additional year to work with, which the government in Bratislava argues is insufficient.
The sanctions package will require unanimous consent from EU member states, whose representatives are combing over the details in Brussels in the hope of reaching an agreement by the end of the week.
According to the draft language, the EU would not only restrict imports, but would also prevent any of its individuals or companies from carrying Russian oil, ensuring its transfer, or maintaining equipment engaged in the fossil fuel's transit.
Von der Leyen pushes EU against Russian oil
According to sources, the first meeting of EU ambassadors on the sixth package was "tense and unpleasant."
von Leyen urged MEPs that the EU should also impose sanctions on military figures "implicated in the slaughter of civilians in Bucha, north of Kiev, and in the siege of the port city of Mariupol," as well as prohibit Russian state television from being broadcast in the EU's 27 member states.
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Under the draft sanctions package, the EU would also withdraw Sberbank, Russia's largest bank, as well as Credit Bank of Moscow and Russian Agricultural Bank from the Swift payment system.
Is the EU's cash the savior?
With billions already committed, the EU is set to be the primary donor of Ukraine's economic recovery from the war, but Von der Leyen has called on the US and others to match those amounts.
Ukraine's GDP is predicted to plummet by 30% to 50% this year alone, she claimed, with the IMF estimating that Ukraine would need €5 billion per month "to keep the country functioning, paying pensions, salaries, and essential services."
“We have to support them, but we cannot do it alone,” Von der Leyen said. “I welcome that the United States announced massive budgetary support. And we, as Team Europe, will also do our share.”
