Page 14 - EurOil Week 47 2022

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Estonia threatens to use veto in taxation on the Russian oil imported to are strategic partners that cooperate in many
areas, and indicated that the cooperation
Slovakia. Together with Czechia and Hungary,
Russian oil price cap dispute Slovakia has an exemption from the EU documents represent the legal basis for
further development of relations.
embargo on the Russian oil imports which
Estonia is after an agreement in the EU for kicks in at the beginning of December. “We talked about energy and we
a lower price cap on Russian oil than what The cabinet led by premier Eduard Heger will continue those talks about natural
has been proposed by the G7. Minister of (OLaNO) have been discussing since May gas, electricity and indeed there are
Foreign Affairs Urmas Reinsalu hinted that how to impose a windfall tax on Russian oil, new possibilities and opportunities for
Estonia could resort to its veto right, ERR. following a proposal by Finance Minister Igor cooperation,” the Azerbaijani president said.
ee, an Estonian news website, reported on Matovic (OLaNO). OLaNO’s then coalition He pointed out that Azerbaijan has rich gas
November 24. partner SaS, a libertarian party led by Richard resources and plays an important role in the
Reuters reported on November 24 that Sulik, had opposed the tax but it left the energy security of many countries.
European Union governments failed to agree coalition in September, depriving Heger’s “Our role will grow, and we will cooperate
on whether to support the G7’s $65-70 per cabinet of majority backing in the parliament. with friendly countries in the first place, not
barrel price cap proposal. OLaNO and SaS disagreement still only when it comes to energy, but in all areas,”
“Estonia finds that the price horizon’s prevents the implementation of the tax today, Aliyev said.
ambition is too low, considering that the public broadcaster RTVS reports. SaS argues Vucic announced that in the next 20 days,
EU has also failed to agree on a ninth revenue from the tax needs to redistributed he will pay a working visit to Baku with a
sanctions package. The cap seems too high,” to people and it has also submitted several delegation of several ministers to continue
Minister of Foreign Affairs Urmas Reinsalu amendments to the legislation. talks on further cooperation.
(Isamaa party) said at the government press “One of the amendments lowers the VAT
conference on November 24. on fuel to 8%. Another lowers consumer
“It is a critical moment where all member tax on fuels as well,” SaS chairman of the Baltic states, Poland pushing for
states have an equal vote,” the foreign minister Parliamentary Financial Committee Marian
added, pointing to EU foreign policy rules on Viskupic was quoted as saying. It is unclear EU-wide price cap on Russian oil
consensual decision-making or countries’ de whether there will be enough backing in the
facto veto rights. parliament to move on with the legislation. Lithuania, Latvia, Estonia, and Poland are
“Expressing our position clearly in a life RTVS also notes there have been no pushing other EU countries and the European
or death situation such as this war is surely talks with the Slovak oil-processing refinery Commission to agree on a Russian oil price
justified. Therefore, these discussions are Slovnaft, which is owned by Hungary’s MOL, cap and the EU’s ninth sanctions package
ongoing,” Reinsalu said. over whether taxation could raise price against Moscow at the same time, Politico has
Reuters wrote that Poland, Estonia and of fuel in Slovakia. “I am not leading any reported.
Latvia remain opposed to the proposed cap, negotiations, but there is no guarantee” as The four countries have been arguing for
which they find too high in a situation where to the possible hike in fuel prices, OLaNO tougher EU sanctions against Russian since
the cost price of Russian oil is around $20. Chairman of the Parliamentary Economy the start of its war in Ukraine.
This would leave Moscow with plenty of Committee Peter Kremsky said. According to Politico, however, other EU
oil income. Politico and Reuters report that The exemption on imports of Russian countries are less enthusiastic about linking
Poland asked for the ceiling to be set at $30 oil also entails that Slovnaft curtails export the oil price cap to new sanctions. They argue
per barrel. of produced fuel abroad over the next 18 that the ninth sanctions package is not ready
Lithuania is not either satisfied with the months. Slovnaft is working on replacing yet and including measures, such as oil price
European Commission’s proposed price cap Russian oil. caps, would make the negotiations more
on wholesale natural gas, President Gitanas difficult.
Nauseda said on November 24. The ninth EU sanctions package is
“The proposed solution is unsatisfactory Serbia and Azerbaijan deepen expected to focus on individual listings,
because it would not help to protect ourselves hitting Russian officials, propagandists,
even against the peak we had in the past,” co-operationr executives, and other figures, two EU officials
he said at a joint news conference with told Politico, reports LRT.lt, the website of
Romanian President Klaus Iohannis in Vilnius Serbian President Aleksandar Vucic met Lithuanian public broadcaster LRT.
on November 24. President of Azerbaijan Ilham Aliyev in
U.S. Secretary of the Treasury Janet Yellen Belgrade on November 23, discussing
has proposed the cap at $60, Politico wrote on cooperation in the field of energy and the Baltic states and Poland
November 24. deepening of their partnership.
The publication said that most EU member Amid the energy crisis, Serbia plans to pushing for EU-wide price cap
states agree to the price ceiling proposed by secure at least 30-40% of gas supplies from
the G7. alternative suppliers to Russia, including from on Russian oil
The price of Brent crude is currently Azerbaijan.
hovering around the $85 mark, ERR.ee said. Seven bilateral documents were signed Lithuania, Latvia, Estonia, and Poland are
during the meeting including a memorandum pushing other EU countries and the European
of understanding (MoU) to establish the Commission to agree on a Russian oil price
Slovak legislators still Strategic Partnership Council between Serbia cap and the EU’s ninth sanctions package
against Moscow at the same time, Politico has
and Azerbaijan.
divided over implementation and the two countries persistently protect reported.
“Azerbaijan is a reliable partner of Serbia,
The four countries have been arguing for
of windfall tax on Russian oil territorial integrity and support each other in tougher EU sanctions against Russian since
the start of its war in Ukraine.
international organizations,” Vucic was cited
Deputies at the Slovak parliament have still by broadcaster RTS. According to Politico, however, other EU
not reached an agreement on implementating Aliyev said that Serbia and Azerbaijan countries are less enthusiastic about linking

P14 www. NEWSBASE .com Week 47 28•November•2022