EU may exempt 2 member countries from Russia oil embargo

Sources told Reuters the European Commission will propose a ban on Russian oil imports and has discussed allowing Hungary and Slovakia – two countries that have close relations with Russia and have declared their opposition to the ban – immunity aimed at reaching consensus among the rest of the 27-member European Union.

The European Commission is expected on May 3 to finalize the sixth package of sanctions against Russia because of its military campaign in Ukraine. The sixth package of sanctions includes a ban on buying Russian oil. Oil exports are Moscow’s main source of income.

Hungary, which is heavily dependent on Russian oil, has repeatedly said it will not sign up to energy-related sanctions. Slovakia is also among the EU countries most dependent on Russian fossil fuels.

To achieve unification for the 27-nation bloc, the European Commission could propose to Slovakia and Hungary “an exemption or a long transition period”, one of the EU officials told Reuters.

On May 3, Slovakia’s Economy Ministry said that it will apply for an exemption from all sanctions on Russian oil that the EU has agreed to in the sixth package of sanctions against Moscow.

Slovakia imports almost all of its crude oil from Russia mainly through the Druzhba pipeline from the Soviet era, and has 120-day oil reserves. Slovakia’s sole refinery is Slovnaft, part of the Hungarian MOL group.

The Slovak Economy Ministry said that the refining of different oils is not immediately possible, and the technology transition is difficult financially and in terms of time. “We therefore require a longer transition period for oil transported by pipeline,” the ministry said.

The Ministry of Economy also said that Slovakia is actively assisting Ukraine with fuel supply. In addition, Slovakia has provided weapons, including S-300 air defense systems and other military aid to Ukraine. Slovak Prime Minister Eduard Heger was also among Western leaders visiting Kiev in recent weeks.

Foreign Minister Ukraine Dmytro Kuleba thanked Slovakia for its support of Kiev, in what appeared to be a sign of understanding of Slovakia’s position.

“Ukraine will always remember what our Slovak friends have done for us. Warm welcome to Ukrainians fleeing war, humanitarian aid, arms supply, support for giving Ukraine the status of a candidate. member of the EU and allows duty-free exports to the EU. We are lucky to have Slovakia as a neighbour,” Foreign Minister Kuleba wrote on Twitter.

Officials said the oil embargo would likely be implemented in phases and would most likely take full effect as early as next year.

Europe is the export market for nearly half of the country’s oil and petroleum products Russia – gives Moscow huge revenues that countries including Latvia and Poland say must be cut, in order to stop funding Russia’s military campaign in Ukraine.

According to the Center for Research on Energy and Clean Air (CREA), a Helsinki-based think tank, EU countries have paid more than 46 billion euros ($47.43 billion) to buy gas. and Russian oil since Russia launched a military operation in Ukraine on February 24. Overall, the EU depends on Russia for about 26% of its oil imports.

Hungary and Slovakia – both on the southern route of the Druzhba pipeline bringing Russian oil to Europe – are particularly dependent on Russia. According to the International Energy Agency (IEA), in 2021 Hungary will import 58% of its crude oil from Russia, while Slovakia will import 96%.

In the biggest change to date, Virtue announced that it would no longer oppose the ban on Russian oil imports immediately, although initially opposed it because of concerns about the economic impact, Deutsche Welle (DW) reported.

Germany imports 35% of its crude oil from Russia in 2021 (555,000 barrels per day), but in recent weeks has fallen to 12%, the German Economy Ministry said in an update on energy security on May 1. . According to the ministry, Germany can manage the embargo with a sufficiently long transition period, subject to rising prices.

6th Punishment Pack of EU will be presented to European Union governments on May 4.