Brussels is committed to a gradual reduction of imports until the end of the year and gives Hungary and Slovakia another year
The European Union has raised the tone with Russia. The bloc is including a full embargo on Russian oil in its proposal for the sixth package of sanctions, which will deal a serious blow to the country, which sells two-thirds of its crude exports to Europe. Beforehand, the series of sanctions must gain the approval of the Twenty-seven, in order to overcome the unwillingness of Hungary, which has so far shown its rejection of energy penalties against Moscow.
If the measure is adopted, “it will be gradual to reduce the impact on the global market,” European Commission President Ursula von der Leyen said in her speech to the European Parliament. For example, Europe will reduce imports of oil and its derivatives over the next six months, with the aim of achieving independence from Russia by the end of the year. For Hungary and Slovakia, Brussels offers another year, until the end of 2023, to cut ties with Moscow due to their heavy dependence on Russian oil.
The veto on crude oil is a double-edged sword, because of the high costs it will have in the EU. However, the bloc is willing to face the impact of dealing an economic blow to the Kremlin. “Putin has to pay a very high price for his aggression,” insisted the president of the European Executive. It will not be an easy process, given the high energy dependency in Europe and especially in some Member States. The gradual reduction marks “a reasonable period” to look for alternative suppliers and reduce the impact on European economies.
Europe had already assumed that the embargo on oil and gas was the logical step after the Russian invasion and the cut-off of gas to Poland and Bulgaria. In a unitary message, community leaders assured Moscow was no longer a “trustworthy partner.” However, Energy Commissioner Kadri Simson has warned several times that the EU will not be able to completely replace the supply of gas and oil from Russia.
The continent’s energy future therefore depends on the diversification of energy sources – with the promotion of renewables – and energy conservation. Meanwhile, member states are working on gas supplies for the coming winter and hope to have 80% of their strategic reserves by October.
Under the new set of sanctions, the EU also includes the disconnection of the international SWIFT payment system of the Russian bank Sberbank, the largest entity in the country and which controls about 37% of the volume of the national banking sector. In addition, Europe will stop providing advisory services to Russian companies and ban the broadcasting (over the air, applications or internet) of three radio media “which only broadcast Kremlin propaganda”.
The individual European sanctions on this occasion target senior military commanders of the Russian army, who are responsible for the atrocities committed in cities such as Bucha or Mariúpol. “We know who you are and you will be held accountable,” he said. The list includes a total of 58 personalities, including the Supreme Leader of the Orthodox Church, Patriarch Kirill, who recently called for Russian unity in the face of the invasion of Ukraine, as well as his wife, the daughter and son of Kremlin spokesman Dmitri. Peskov.
At the same time, the EU is looking to the future and to the reconstruction of Ukraine after the war. The humanitarian and economic balance is devastating. According to IMF calculations, the region’s GDP will fall by about 40% this year, so Kiev will need about 5,000 million euros to continue to function and pay the salaries and pensions of its citizens. “In the heat of war it is difficult to quantify the damage, but it will cost tens of billions of euros to rebuild Ukraine,” von der Leyen estimates.
The country is not alone in this endeavour, and Europe applauds the support of countries such as the United States for Kiev. The next step from Brussels is to create a recovery package for the country, with the aim of attracting international investment that will support the country’s long-term growth.
According to the president of the European Commission, this fund will be based on “a system of measurable milestones, so that European money reaches the Ukrainians and that it will be spent according to our rules, avoiding corruption and paving the way for the future”. A horizon in which «Ukraine will emerge stronger».
Source: La Verdad
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