EU proposes ban of transportation of Russian oil by European tankers; member states oppose

While the European Commission is struggling in a feud with Hungary over a Russian oil embargo, another battle is raging behind the scenes between Brussels and its member states. The dispute is not about importing oil, but about preventing EU tankers from transporting Russian oil. The embargo on European vessels transporting Russian oil has been opposed by Greece, Cyprus, and Malta.

The transport ban should have prevented Russia from selling oil to countries other than the EU. According to several reports, the bloc is concerned that after an EU embargo, Russia will export its oil to other countries. Notably, Russian foreign minister Sergey Lavrov had stated earlier that Moscow has a sufficient number of buyers.

Moreover, countries like India and China are already ordering the sought-after raw material at steep discounts, but the Kremlin is still profiting. The bloc's goal was to make these transportations more challenging by imposing stringent sanctions. Germany, Greece, and Malta were particularly vocal in their opposition, and Cyprus threatened to veto the sixth sanctions package if the tanker embargo was included.

Biden govt aims to cripple Russia's oil industry

The New York Times reported citing current and former US officials that the US' Joe Biden administration is working on plans to further stifle Russia's oil revenues with the long-term goal of destroying the country's central role in the global energy economy, a major escalation that could put the US in political conflict with India, China, Turkey, and other countries that buy Russian oil. The suggested measures include setting a price cap on Russian oil, supported by so-called secondary sanctions, which would prevent international customers from doing business with American and partner country corporations if they did not comply with US regulations.

As President Vladimir Putin wages war in Ukraine, the United States and its allies have imposed economic sanctions on Russia. However, the nearly $20 billion per month that Russia continues to earn from oil sales, according to officials and experts, could sustain the grinding conflict in eastern Ukraine and finance any future aggressions. According to US officials, the main question now is how to deprive Moscow of that money while ensuring that global oil supplies do not fall, which could lead to a price increase that benefits Putin while worsening inflation in the US and elsewhere. As US elections approach, President Biden has stated that dealing with inflation is a top priority.

(With agency inputs)

Image: AP