Connect with us

Hi, what are you looking for?


EU, resolving a deadlock, in deal to cut most Russia oil imports

Barrels for storing oil | STOCK IMAGE | Oil barrel photo created by jannoon028 –

BRUSSELS – European Union leaders agreed in principle on Monday to cut 90% of oil imports from Russia by the end of this year, resolving a deadlock with Hungary over the bloc’s toughest sanction yet on Moscow since the invasion of Ukraine three months ago.

Diplomats said the agreement would clear the way for other elements of a sixth package of EU sanctions on Russia to take effect, including cutting Russia‘s biggest bank, Sberbank SBMX.MM, from the SWIFT messaging system.

“Agreement to ban export of Russian oil to the EU,” said European Council President Charles Michel in a tweet at the end of the first day of a two-day summit of the bloc’s 27 leaders.

“This immediately covers more than 2/3 of oil imports from Russia, cutting a huge source of financing for its war machine. Maximum pressure on Russia to end the war,” he said.

Two thirds of the Russian oil imported by the EU comes via tanker and one third by the Druzhba pipeline. The embargo on seaborne oil imports would therefore apply to 2/3 of all oil imported from Russia.

The embargo would encompass 90% of all imports from Russia once Poland and Germany, which are also connected to the pipeline, stop buying it by the end of the year.

The remaining 10% will be temporarily exempt from the embargo so that landlocked Hungary, which was the main holdout for a deal, along with Slovakia and the Czech Republic, which are all connected to the southern leg of the pipeline, has access which it cannot easily replace.

Budapest also appeared to have won reassurances from other leaders that emergency measures would apply “in case of sudden interruptions of supply” following concerns raised by Prime Minister Viktor Orban about risks posed to the Russian oil pipeline that runs through Ukraine to Hungary.

The ban on oil imports to EU countries will apply to Russian crude that is delivered by shipments.

It was not immediately clear how member states that receive oil from tankers would be compensated for the higher cost compared with those that will keep the pipelines open.


Earlier, Ukrainian President Volodymyr Zelenskiy chastised the EU leaders in a video address for being too soft on Moscow as an agreement on an oil embargo still appeared elusive.

“Why are you dependent on Russia, on their pressure, and not vice-versa? Russia must be dependent on you. Why can Russia still earn almost a billion euros a day by selling energy?” Zelenskiy said.

The EU has rolled out five rounds of sanctions since Russia invaded Ukraine in February, demonstrating uncharacteristic speed and unity given the complexity of the measures.

But the haggling over an oil import ban exposed a struggle to widen sanctions as the economic risk for Europe grows, because so many countries depend on Russian crude.

Dutch Prime Minister Mark Rutte said as he left the Brussels talks that he had been surprised by the turn of events.

“At the beginning of the evening I wasn’t at all hopeful, but at 11 p.m. or so, it was done,” he said, adding that technical details still unresolved should not be difficult.

The summit also brought political backing for a package of EU loans worth 9 billion euros ($9.7 billion), with a small component of grants to cover part of the interest, for Ukraine to keep its government going and pay wages for about two months.

Leaders also backed the creation of an international fund to rebuild Ukraine after the war, with details to be decided later.

On Tuesday the leaders will pledge to accelerate work to help Ukraine move its grain out of the country to global buyers via rail and truck because the Russian navy is blocking the usual sea routes, and to take steps to more quickly become independent of Russian energy. – Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



PIXABAY THE PESO strengthened versus the dollar on Tuesday on continued gains at the local stock market. The local unit closed at P54.77 per...


PHILIPPINE STOCKS closed higher on Tuesday on continued bargain hunting after last week’s decline and amid window dressing activities. The benchmark Philippine Stock Exchange...


PSALM.GOV.PH THE Department of Finance (DoF) said it expects to serve as the implementing agency for rehabilitating the Agus-Pulangi hydropower complex in Mindanao, which...


PHILSTAR FILE PHOTO THE Department of Agriculture (DA) said it is relaxing import bans, allowing vaccine imports, and exploring new types of feed to...


THE Intellectual Property Office of the Philippines (IPOPHL) said a collective mark registration for pili products, which will be identified as “Bikol Pili” to...


PHILIPPINE STAR/ MIGUEL DE GUZMAN TRANSPORT GROUPS are asking the Land Transportation Franchising and Regulatory Board (LTFRB) to allow jeepney operators and drivers to raise fares...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.