European Union plans phased oil ban on Russia, additionally focusing on extra banks

The European Union’s chief government on Wednesday proposed a phased oil embargo on Russia over its struggle in Ukraine, in addition to sanctioning Russia’s high financial institution and banning Russian broadcasters from European airwaves, in a bid to deepen Moscow’s isolation.

The plan, if agreed by EU governments, would mark a watershed for the world’s largest buying and selling bloc, which depends on Russian vitality and should discover various provides.

But Russia’s invasion of Ukraine by land, sea and air on February 24, the renewed Russian offensive in japanese Ukraine and the horrific photos of slaughter in Ukrainian cities have overcome reluctance to ship the hardest sanctions to this point.

“Today, we will propose to ban all Russian oil from Europe,” European Commission President Ursula von der Leyen informed the European Parliament in Strasbourg.

“This will be a complete import ban on all Russia,” she stated to applause within the chamber.

The Commission’s measures embrace phasing out provides of Russian crude oil inside six months and refined merchandise by the top of 2022, von der Leyen stated. She pledged to minimise the impression on European economies.

The value of Brent crude rose 2% to $107,11 at round 0900 CET, up 37.5% because the begin of yr.

Soon we are going to have fun Europe Day.
A day to mirror on our Union.
But additionally on the way forward for the EU.
Which as we speak, can also be written in Ukraine. https://t.co/pxhdYDTvfj

— Ursula von der Leyen (@vonderleyen) May 4, 2022

“We are addressing our dependency on Russian oil. And let’s be clear, it will not be easy because some member states are strongly dependent on Russian oil, but we simply have to do it,” she stated.

“(Russian President Vladimir)Putin must pay a price, a high price, for his brutal aggression,” she stated.

As nicely as oil, the newest spherical of sanctions will hit Sberbank, Russia’s high lender, in addition to three different banks, including it to a number of banks which have already been excluded from the SWIFT messaging system.

“We de-SWIFT Sberbank – by far Russia’s largest bank, and two other major banks. By that, we hit banks that are systemically critical to the Russian financial system and Putin’s ability to wage destruction,” von der Leyen stated.

“This will solidify the complete isolation of the Russian financial sector from the global system,” she stated.

Von der Leyen stated extra high-ranking Russian army officers would face EU asset freezes and journey bans, with out giving names. “You are not getting away with this,” she stated, referring to the Kremlin.

The proposals by the Commission now must go to the 27 member states for approval. Diplomats stated there was more likely to be an extended interval granted to Hungary and Slovakia to cease oil imports as they’re so closely depending on Russian vitality.

Simone Tagliapietra of the Bruegel assume tank stated the EU’s gradual embargo on Russian oil was “a risky bet”

“In the short term it might leave Russian revenues high while implying negative consequences for the EU and global economy in terms of higher prices,” he stated. “Not to talk about retaliation risks on natural gas supplies.”