Russian

EU embargo on Russian oil imminent | OilPrice.com 2022-04-29 13:34:46

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European Union members are expected to agree to a ban on imports of Russian crude oil as early as next week, according to officials, in a move that will raise a point of contention among its members.

Such a measure has been debated for weeks – as the US added pressure on the group to do its part to stop funding Russia with its payments for oil and gas supplies.

The European Union will continue to discuss the matter over the weekend, according to the New York Times, with the European Commission preparing to draft the final proposal to present to EU ambassadors for approval. Those ambassadors are due to meet on Wednesday of next week, and the final approval is due to be delivered by the end of the week, anonymous EU officials told the New York Times.

There is no indication how comprehensive or complete the ban will be, but it is clear that there is some kind of ban looming.

The European Union gets a quarter of its crude oil from Russia. Analysts have suggested that if the EU imposes a complete embargo on crude, it will take a major financial hit and that Russia may be unable to find enough willing buyers to transport oil that normally heads to the EU. Such a financial blow could impede Russian President Vladimir Putin’s ability to continue financing the war in Ukraine.

There are long term effects as well. If Russia fails to find an outlet for all of its crude in the wake of the European Union’s crude oil embargo, Russia may be forced to cut production—production that may not be able to get back up and running again.

By Julian Geiger for Oilprice.com

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