Politico: agreement on new sanctions against Russia is delayed due to the position of a number of EU countries

The imposition of new sanctions by the European Union (EU) against Russia may be delayed, as several countries do not agree with limiting the price of Russian oil, reports Politico with reference to sources. Among those who disagree are Hungary, as well as Cyprus, Greece and Malta, whose tankers carry most of the Russian oil to the EU.

Hungary wants to be allowed to re-export to neighboring EU countries the Russian oil it receives through the pipeline thanks to an exemption from the previous package of sanctions. However, EU countries are concerned that Hungary will gain “an unfair advantage in the single market.” One of Politico’s interlocutors warned that the EU could limit prices for pipeline oil as well. In such a case, Hungary will not be able to veto, as this is considered a “trade measure”, which requires only a majority vote of the EU.

Cyprus, Greece and Malta are worried that the EU will shoot itself in the foot by banning their tanker fleets from carrying Russian oil unless similar bans are imposed by other major shipping countries such as Turkey, India and Indonesia. However, diplomats fear that waiting for India’s consent “is the same as not imposing sanctions.”

The ambassadors of the EU countries intend to hold additional meetings this week to discuss new sanctions. “I think we will need one or two more meetings with country representatives to reach an agreement,” said one senior European diplomat. The ambassadors want to agree on a package of sanctions by Friday, October 7th.

Before the outbreak of hostilities in Ukraine, the EU accounted for over 60% of Russian oil exports. As part of the sanctions, the EU imposed an embargo on Russian oil, which will come into force on December 5. EU also discusses cap on Russian oil prices. What will be the maximum allowable price, while unknown. Ministry of Energy of the Russian Federation warnedwhich excludes the sale of oil or gas at a limited price.

Details – in the material “Kommersant” “Oil and gas covered ceilings”.

Laura Keffer