EU governments failed to reach agreement on Russian oil embargo on Sunday, but will continue negotiations on Monday morning, trying to prepare an agreement in time for an EU summit on Monday afternoon, an EU official said, as quoted by Reuters.
The proposal currently under discussion between EU countries calls for a ban on Russian oil delivered to the EU by sea by the end of the year, but provides for an exemption for oil delivered by the Russian Drujba pipeline, which supplies Hungary, Slovakia and the Czech Republic.
The proposed sanctions for Russian oil imports are part of the European Union’s sixth package of sanctions against Russia over the invasion of Ukraine. The package includes the removal of Russia’s largest bank, Sberbank SBMX.MM, from the SWIFT messaging system, a ban on Russian broadcasters in the EU and the addition of several people to a list of people whose assets are frozen and who cannot enter the EU.
German Economy Minister Robert Habeck has expressed concern that EU unity on new sanctions against Russia is “starting to collapse”, Reuters reports.
“After Russia’s attack on Ukraine, we have seen what can happen when Europe remains united. With a view to tomorrow’s summit, let’s hope it continues like this. But it is already starting to collapse,” he told a news conference earlier today.
This new package of sanctions is being blocked by Hungary, a landlocked country that is 65% dependent on oil transported from Russia by the Drujba pipeline. EU sanctions require the unanimity of the twenty-seven.
Budapest rejected the two-year waiver proposal and asked for at least four years and almost 800 million euros in European funding to adapt its refineries. In a context in which Budapest’s post-Covid recovery plan remains blocked by Brussels due to the violation of the rule of law in Hungary, it would seem difficult to provide European funds.
The EU’s plan was to go through an “organized” transition to give up Russian crude oil within six months and refined products by the end of 2022. However, opposition, especially from Hungary, has kept the the sixth EU sanctions package. Other landlocked countries, such as Slovakia and the Czech Republic, have asked for more time because of their dependence on Russian oil. Bulgaria, already deprived of Russian gas since Gazprom decided to suspend supplies, has also sought relief.