The EU agreed to embargo most of the oil, Russia “loses 10 billion USD / year”

After the meeting until the evening of May 30 (local time), EU Council President Charles Michel announced a new sanctions package that would cut oil imports from Russia by two-thirds. According to the news agency APthe embargo was agreed to cover only the shipping of Russian oil by sea, allowing the exclusion of sanctions on cargo transported by pipeline.

This will cut off a large source of Russian finance coming from oil and maximum pressure on Russia to end hostilities in Ukraine. This decision will cost Russia 10 billion USD in export revenue every year, according to calculations by Bloomberg.

French President Emmanuel Macron attends a summit of EU leaders on Russia’s oil sanctions in Brussels, Belgium, May 30. Photo: Reuters

However, the EU agreed to give Hungary, which is heavily dependent on Russian crude oil, an exception with the bloc’s oil ban. Bloomberg cited sources as saying Budapest has received assurances from EU leaders that the country will be able to receive alternative supplies if the pipeline is disrupted.

Hungary believes that the embargo will harm the country’s economy. Not only Hungary, Slovakia and the Czech Republic also expressed similar concerns.

European Commission (EC) President Ursula von der Leyen said on Twitter that she welcomed the decision on oil sanctions against Russia.

Ursula von der Leyen said: “I am pleased that the leaders were able to agree in principle on the sixth package of sanctions. The Council is now able to complete the moratorium on almost 90% of the total oil. Russian imports by the end of the year. This is an important step forward. With the remaining 10%, oil supplied via pipeline, we will come back to this soon.”

Last month, Ursula von der Leyen confirmed that the EU would phase out energy from Russia with a 6-month schedule for crude oil and refined products by the end of the year.

A special meeting of the Council of Europe was held in Brussels, Belgium, on May 30. Photo: Reuters

In the trading session on May 30, oil prices rose to more than $121 a barrel, touching a two-month high as China began easing restrictions to prevent the spread of Covid-19, also. as traders expect the EU to reach an agreement to ban Russian oil imports.

Specifically, the Brent crude oil contract for July delivery (which expires on May 31) increased by $2.24, or 1.9%, to $121.67 a barrel. WTI crude oil futures rose $1.99, or 1.7%, to $117.06 a barrel, extending the solid gains achieved last week.