Hitting Russia’s energy sector will hurt both Russia and the EU. Especially for countries like Hungary and Slovakia. Nevertheless, there is agreement among EU countries to hit the sector, which fills up the Russian war coffers.
The European Commission is working on a sixth sanction package against Russia and the proposal can be presented tomorrow. This weekend there has been hectic activity between the EU countries. The package will be discussed by the EU countries’ ambassadors on Wednesday.
– It is very likely that we can agree on the package this week, says an EU diplomat to the website Euractiv.
Crisis meeting on rubles
Today, EU energy ministers gather for an emergency meeting after Russia has demanded a settlement for gas in rubles. The European Commission has warned member states that those countries that comply with Russia are violating sanctions. Several countries are now helping each other with gas supplies. Among other things, the ministers will discuss what they will do if Russia shuts down gas supplies to the entire EU.
An oil boycott of Russia will also be discussed at the meeting.
According to German media, Germany has reversed and now supports a boycott of oil from Russia. Admittedly with a transition period of unknown length.
According to the online newspaper Euractiv, a solution is being discussed where oil transported on ships will be boycotted, but not oil that arrives in Europe via pipelines. This will be a temporary solution to avoid a veto from Hungary. Without access to the sea, Hungary will not receive oil from Russia via oil tankers.
– COMING SOON: There are many indications that the President of the European Commission, Ursula von der Leyen, may present a sixth sanctions package against Russia this week. With an oil boycott. Photo: Jean-Francois Badias / AP
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Several countries also want the oil boycott not to be implemented before the current contracts with Russia expire. Some member states have also asked for more time to consider the details of how an oil boycott will affect them. It is suggested that Russian oil will be phased out completely during the year.
More oligarchs
The sixth sanction package will also put a new Russian bank, Sberbank, on the blacklist. In addition to several oligarchs and friends and family of those already on the sanctions list.
A sanctions package that restricts parts of Russia’s energy revenues will be the most complicated for EU countries to date. Oil prices and inflation are likely to rise. Rising prices for a number of necessary food, electricity and fuel are already creating economic problems for a number of households in Europe.
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