Page 4 - FSUOGM Week 18 2022

FSUOGM COMMENTARY FSUOGM

(Photo: Sovcomflot)
How might an EU embargo

affect Russian oil imports?

Although Russian oil companies appear to have shifted some deliveries to Asia, Moscow is

already well-versed in embargo evasion – and Brussels has incentives to look the other way

AS of this writing, the energy ministers of the remains heavily reliant on Russian fuels, espe-
European Union’s 27 member states are still cially natural gas (as it is the endpoint of several
WHAT: debating the question of whether to impose an major Russian gas export pipelines), so of course
The EU is mulling embargo on the importation of Russian crude it has only pledged to drop Russian oil supplies
proposals for introducing oil supplies. after ensuring that it had extra time to find other
a formal embargo on They have yet to make a final decision on the suppliers.
Russian oil imports. ban, which would be part of the sixth set of sanc- Nor is it a surprise that Hungary and Slovakia
tions imposed on Russia since the invasion of are both adamant about vetoing the new sanc-
WHY: Ukraine in late February. tions. Both of these countries host sections of
US sanctions on Vene- The issue is a contentious one, not least the Druzhba pipeline network, and both have
zuela gave Russia an because Russia is one of the EU’s most important pointed out repeatedly that they do not have
opportunity to practise sources of oil. It is also not an abstract matter. any easy way to replace the energy they would
techniques that obscure
the origin of oil cargoes. Multiple EU member states host the pipelines lose if they dropped Russian oil companies as
and marine terminals that deliver Russian crude suppliers.
WHAT NEXT: to European refineries. As a result, if Brussels But there may be a way around the veto. On
Those techniques already bars Russian oil imports, there is a very real risk May 2, two unnamed EU officials told Reuters
appear to be in play that EU countries will start to experience fuel that Brussels was mulling the possibility of
in the Mediterranean shortages, along with all the price rises, priva- striking a deal with Budapest and Bratislava in
and may become more tions and social disruptions that are likely to order to prevent an impasse over sanctions. Spe-
common if Brussels intro- accompany them. cifically, one of the officials said, the European
duces formal sanctions. It’s no wonder, then, that Germany was slow Commission might grant Hungary and Slovakia
to decide whether it would veto the proposed extended waivers from an oil embargo or give
EU oil embargo. The EU’s largest economy them extra time to replace Russian supplies.

P4 www. NEWSBASE .com Week 18 05•May•2021