Page 14 - FSUOGM Week 10 2022

FSUOGM POLICY FSUOGM

Calls for embargo of Russian

oil, gas gain traction

RUSSIA THERE are growing calls in the US and the EU respond to the conflict in Ukraine by “de-Russi-
for an embargo to be placed on Russian oil and fying” its energy sector.
There is a concerted gas supplies in light of escalating military action “This ongoing conflict and the war is con-
push to end reliance on in Ukraine. Yet at least in the EU, few member vincing us all that we don’t need more tools of
Russian energy, even states are in a position to impose an outright ban blackmail from Gazprom and the Russian Fed-
among countries that on Russian energy without crippling their own eration,” she told Politico in an interview.
were previously quite economies. Polish Prime Minister Mateusz Morawiecki
comfortable about this The EU has previously ruled out any sanc- has called for similar action.
dependence. tions against Russia that would affect its ability to Meanwhile, Lithuanian Foreign Minister
export oil and gas, given the toll this would take Gabrielius Landsbergis backed an embargo on
on the bloc’s economy as a result of higher prices. March 7.
Oil and gas prices have already soared in recent “Energy sources which we import pay for the
days since Russia’s military action in Ukraine Russian military operation,” she said in a joint
began, with Brent touching $130 per barrel in news conference with US Secretary of State
early trading on March 7, after the front-month Anthony Blinken. “We cannot pay for oil and
contract at the Dutch TTF gas hub spiked at gas with the blood of Ukraine.”
nearly $4,000 per 1,000 cubic metres. Still, the EU would struggle to end oil and gas
US Secretary of State Anthony Blinken said imports at least in the short term. Russia supplies
on March 6 that the US and its European allies about 40% of the bloc’s gas, while also providing
were engaged in “very active discussions” on a quarter of its oil imports. Many refineries in
imposing a ban on Russian crude sales. Central and Eastern Europe are linked to Rus-
“We are now in very active discussions with sia’s Druzhba oil pipeline system, and while some
our European partners about banning the have made efforts in recent years to import more
import of Russian oil to our countries, while of supply from elsewhere, particularly from the
course, at the same time, maintaining a steady Middle East, ending Russian oil supply com-
global supply of oil,” Blinken said in an NBC pletely could not happen overnight.
interview. Likewise, many EU states that are signif-
Japan, Russia’s fifth-biggest supplier of oil, icantly dependent on Russian gas have no
is also in talks on taking such a step, the Kyodo physical means of importing enough supply
News Agency reported on March 7. from other producers. Even Poland, which
There is broad public support for an embargo sees the ending of Russian gas imports as a
in the US, but the impact of such a measure strategic priority, will be unable to achieve
would not be greatly significant. In 2021, the this until at least the Baltic Pipe from Norway
US imported an average of 209,000 barrels per is operational. The pipeline is due online in
day of oil and 500,000 bpd of other petroleum October 2022, although it is unclear whether
products from Russia. And while this is a con- environmental permitting issues in Denmark
siderable amount of trade in its own right, the have affected the schedule.
size of the US market means that Russia only Nevertheless, there is a concerted push in the
accounted for 3.5% of US imported oil in 2021. EU to phase out both Russian oil and gas over
Its dependence on Russia for gasoline is signifi- the longer term, even among countries that pre-
cantly greater, at 21%, but even this is a relatively viously seemed quite comfortable about depend-
small share in comparison to how much some ing greatly on Russia for their energy. Germany,
European countries depend on Russian energy. Europe’s biggest gas market, has shelved Russia’s
Several eastern EU member states have been Nord Stream 2 pipeline and said it will build
the most vocal in calling for an embargo on Rus- LNG terminals instead, while Italy is in talks
sian fossil fuel supply. Polish Energy Minister with Algeria and its other suppliers to bring Rus-
Anna Moskwa said last week that the EU should sian imports to a minimum. ™

P14 www. NEWSBASE .com Week 10 10•March•2022