Negotiations are continuing among EU countries on the gradual embargo on Russian oil until the end of the year, ahead of the extraordinary Summit in Brussels.
Efforts to find a consensual solution among member states will continue this morning at the ambassadors' (Coreper) level in order to prepare the ground for a constructive discussion at the summit that starts on Monday at 5 p.m. (Cyprus time), a European official said. The Commission and the French EU presidency have been leading the talks for the past 48 hours.
[/P]According to European Commission circles, the proposal on the negotiating table is a total embargo on imports of Russian oil by sea, which would come into force by the end of the year and an exemption, at present, for imports of Russian oil by pipeline, in particular through the Russian Druzhba pipeline supplying Hungary, Slovakia and the Czech Republic.
"The Druzhba issue will be raised again soon," a European source assured."
Hungary, a landlocked country with no access to the sea, 65% dependent for its supply on oil transported from Russia via Druzhba, opposes the embargo on this pipeline and rejected the first offer to opt out for two years made to it. Budapest has asked for at least four years and European funding of almost €800 million to adapt its refineries.
But at a time when the plan for recovery from the pandemic put forward by the Hungarian government remains blocked in Brussels because of a dispute with Budapest over the rule of law, it seems difficult to agree to European funds.
This is a "difficult and complex discussion that takes time, we are trying to find a solution to allow the adoption of the new sanctions. We may not be able to reach an agreement" before the summit, a European official warned.
The exemption mainly raises a problem of "equality" between member states in terms of oil imports, which some have raised, according to the same source.
"I hope we will be able to reach an agreement tomorrow.I hope to reach a deal tomorrow (i.e. today), but I am not sure, it will depend on the leaders," a European diplomat estimated.
The adoption of the 6th package of sanctions on Russia requires unanimity of the 27.
"By targeting oil transported by sea, we are hitting at least two-thirds of Russian oil," a European official estimated. EU sanctions are aimed at draining funding for Russia's war against Ukraine.
Tomorrow the European Council will be briefed on these talks, but an ambassadorial-level agreement is expected next week, the same Commission sources said.
For the EU, spending on oil imports ($80 billion) in 2021 was four times that on gas imports.
If a "limited embargo is imposed, excluding oil pipelines, it will be much less painful for (President Vladimir) Putin's Russia because finding new customers to supply tankers is much less difficult," pointed out Toma Pellerin-Carlene of the Jacques Delors Institute.
"Gravel in the shoe", "elephant in the room": Europeans are worried that if no agreement on new sanctions is found, it will cast a heavy shadow over the meeting of heads of state and government, and deliberations have intensified in recent days.
Ukraine, energy, food security and defence are the topics on the agenda of the European Council. The situation in Ukraine and the continued European assistance with political, financial and weaponry is the first issue to be discussed by the European leaders. President Zelenski will address the European leaders via teleconference at the beginning of the debate.
In addition, on the first day (Monday) of the European Council, the "27" EU leaders will discuss the issue of energy and the high prices that are hitting households and businesses hard. "We need to accelerate our energy transition if we want to phase out our dependence on Russian fossil fuels as soon as possible. Building on our decisions at Versailles, we will discuss the best ways to get the job done," said Charles Michel in the letter of invitation to European leaders.
In addition to the oil embargo, the sanctions package also includes the blocking of Russia's largest bank, Sberbank (37% of the market) and two other Russian banking institutions from the international interbank data exchange system SWIFT, and the addition of some sixty individuals to the EU's blacklist.
The 27 are also expected to discuss the provision of liquidity to Kiev to keep the Ukrainian economy functioning - the Commission has proposed €9 billion in aid in 2022 - as well as the issue of food insecurity due to Ukraine's blockade of grain exports, which is feared to cause a crisis in Africa.
Also on the agenda will be the reconstruction of Ukraine, in which the EU wants to play a key role.
The reconstruction of Ukraine, in which the EU wants to play a key role, will also be on the agenda. Kiev recently estimated that the damage it has suffered due to the destruction of roads and other infrastructure amounts to some $600 billion.
On the second day of the summit, European leaders will discuss the global food security threatened by Russia's military aggression. The discussion will be joined, via teleconference, by African Union President Maki Sal.
Finally, the "27" will address the issue of European defence, as Russia's war against Ukraine has further strengthened their ambition for a strong, coordinated European defence. The priority is for member states to coordinate their efforts to replenish stocks and build a European industrial base.
Source: APE
Contents of this article including associated images are belongs Cyprus Times
Views & opinions expressed are those of the author and/or Cyprus Times
Source
