Page 11 - EurOil Week 18 2022

EurOil POLICY EurOil

Poland urges EU to slap sanctions

on Russian oil and gas

POLICY POLAND has urged its European Union part- might turn off more taps then. Russia rejects the
ners to unite and impose sweeping sanctions on claims of blackmail.
Russia’s oil and natural gas sectors over the war in Both countries informed the ministers that
Ukraine, and not to cave in to pressure to pay for consumers and industry face no immediate
their gas in Russian rubles, apnews.com reported supply risk.
on May 3. EU Energy Commissioner Kadri Simson
The appeal came as EU ministers met in warned that Gazprom’s action “clearly shows that
Brussels to discuss their response to Russia’s they are not reliable suppliers and that means all
decision last week to cut gas supplies to Bulgaria the member states have to have plans in place for
and Poland. Energy giant Gazprom says the two full disruption” to their supplies.
countries failed to pay their bills in April. The 27-nation EU imports around 40% of the
“We will call for immediate sanctions on gas it consumes from Russia. But some member
Russian oil and gas. This is the next, and urgent, countries, notably Hungary and Slovakia, are
and absolute step,” Polish Climate and Environ- more heavily dependent on Russian supplies
ment Minister Anna Moskwa said. “We already than others, and support for a gradual phasing In a move last
have coal. Now it’s time for oil, and [the]second in of an oil embargo is emerging.
step is for gas. The best option is take them all Germany believes it could cope if supplies of week branded
together.” Russian oil were cut off by Moscow. Economy
The EU has hit Russian officials, oligarchs, Minister Robert Habeck said that Russian oil in Europe as
banks, companies and other organisations with now accounts for 12% of total imports, down
rafts of sanctions since Moscow ordered an inva- from 35% before the war, and most of it goes to “blackmail,”
sion of Ukraine in February. The commission is the Schwedt refinery near Berlin. Russian energy
working on a sixth round of measures, possibly “Germany is not against an oil ban from Rus-
including oil restrictions, and could announce sia. Of course, it is a heavy load to bear, but we giant Gazprom
them this week. are ready to do that,” Habeck told reporters. He
The measures would have to be approved by said that a few more weeks or months to find oil cut supplies to
the member countries, which could take several transporting ships, and to better prepare har-
days. bours and pipelines would be useful. Bulgaria and
In a move last week branded in Europe as The EU’s executive branch, the European Poland.
“blackmail,” Russian energy giant Gazprom cut Commission, has warned that companies ceding
supplies to Bulgaria and Poland. It came after to pressure to convert euros to rubles through
Russian President Vladimir Putin said that two accounts at Gazprombank would be in con-
“unfriendly” countries must start paying for gas travention of the bloc’s sanctions.
in rubles, Russia’s currency. Despite the pressure, Europe does have
Bulgaria and Poland have refused to do so, some leverage in the dispute since it pays Russia
like most EU countries. More Gazprom bills are $400mn per day for gas, a huge dent in Moscow’s
due on May 20, and the bloc is wary that Russia coffers should it opt for a complete cutoff.™

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