Updated May 4th, 2022 at 13:28 IST
EU chief Ursula von der Leyen announces new sanctions, proposes oil embargo on Russia
EU Commission officials have handed a draft plan to the member states outlining the new package of sanctions particularly targetting moscow’s oil industry.
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European Commission President Ursula von der Leyen on May 9 proposed a new package of sanctions against Russia that would include a total oil embargo on the Russian oil imports, phasing out Europe’s energy reliance on Moscow by the end of the year 2022. European Commission officials have handed a draft plan to the member states outlining the new package of sanctions particularly targetting Moscow's oil industry and banks that include Sberbank, Russia’s top lender.
Finally, we now propose a ban on Russian oil.
— Ursula von der Leyen (@vonderleyen) May 4, 2022
Let´s be clear: it will not be easy.
But we simply have to work on it.
We will make sure that we phase out Russian oil in an orderly fashion.
To maximise pressure on Russia, while minimizing the impact on our economies pic.twitter.com/fH2wuKN5t2
Package aims to de-SWIFT more banks
The proposed oil embargo will come into effect in several stages and several banks that have been excluded from the SWIFT messaging system will also be included in the new sanctions package, according to European diplomats. “We are working on the sixth package of sanctions which aims to de-SWIFT more banks, list disinformation actors and tackle oil imports,” head of the foreign policy unit at the EU’s executive European Commission, Josep Borrell, said in a tweet on May 4. EU Commission President Ursula von der Leyen proposed adding Russia’s largest bank Sberbank and at least two other major banks, previously exempted, to be disconnected from the SWIFT international banking payment system.
As she addressed the European Parliament in Strasbourg, France, European Commission President Ursula von der Leyen said that the EU will “phase out Russian oil in an orderly fashion.” She further stated that the bloc will impose a total ban on Russian oil “in a way that allows us and our partners to secure alternative supply routes and minimizes the impact on global markets.” The proposals, she said, need to be “unanimously approved” to take effect. The implementation will be the subject of fierce debate, she stated. Getting EU’s all 27 member countries, some of them highly dependent on Russia for oil, will “not be easy” said Von der Leyen.
Earlier, as Russian state-owned oil corporation Gazprom halted the oil supply to Poland and Bulgaria, EU’s member states met in the Gas Coordination Group to discuss the future measures. The proposal for new sanctions comes after German Vice-Chancellor Robert Habeck told EU ministers on Monday that “Germany is not against an oil ban on Russia." Berlin, which had sounded sceptical about the total oil embargo on Russia, imports 35% of its crude oil from Russia. Other states like Hungary and Slovakia are almost 100% dependent for fuel on Moscow which could make the upcoming package’s implementation challenging. According to EU diplomats, one or two highly-dependent states could trigger a domino effect of exemption and undermine the total embargo.
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Published May 4th, 2022 at 13:28 IST
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