Weapon against inflation – EU and US want to maintain oil price ceiling


German Economy Minister Robert Habeck never tires of calling on his EU partners for a complete oil embargo against Russia. But at the moment there is no united front. Hungary and some other Member States that are overly dependent on Russian imports are pushing for longer transition periods or financial compensation. In order to prevent further price increases on world markets, the European Union and the US now apparently want to impose an oil price ceiling.

Habeck announced this on ZDF on Monday evening. The debate on the EU embargo had already led to a rise in the oil price. “So Putin has sold less oil and had more income in recent weeks,” concluded the Green Minister.

However, this should be avoided, especially as high oil prices worldwide are causing problems for the economy. “There’s the idea that people come to an agreement and say we’re not paying a price here anymore.” But that would only work if a large number of countries participated. “The European Commission and the United States are working on this proposal,” Habeck said.

Agreement on oil embargo ‘within days’
The German expressed his confidence that the EU will soon agree on an oil embargo against Russia. “I think we will reach a breakthrough in a few days.” EU diplomats expect a decision on the embargo to be made at the EU summit at the end of May. Until then, EU ambassadors must negotiate a compromise.

This could include granting a longer transition period to Hungary, Slovakia and the Czech Republic until the sanctions are fully implemented. Hungary is demanding millions from the EU to offset the effects of an oil embargo. The sanctions must be decided unanimously by all 27 EU members.

Source: Krone


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