On the subject of sanctions, EU member countries are considering the possibility of stop buying coal and oil from Russia after ithe Bucha massacre. Instead, it would remain from the embargo excluding Moscow gas, too important for the supplies of the Old Continent. That this is an option on the table was confirmed on Tuesday by Vladis Dombrovskis, vice president of the European Commission, before the start of the Ecofin meeting. The decisions will be adopted on Wednesday – this is the expectation – by the European Council for which the affirmative vote of all 27 members of the Union is required.
No to the gas embargo
On Monday, before the Eurogroup meeting, Austria and Germany expressed a clear opinion: “At the moment gas purchases cannot be stopped”. For the Finance Minister of Vienna, Brunner, measures of this type, even on oil, "they do more harm to Europe than to the other side”. Hungary is also on the same line, where the sovereign Victor Orban won the elections for the fourth time, last Sunday.
Until last week, in the draft of the fifth package of sanctions coming against Russia, the interruption of purchases of coal and oil was not there. The possibility of acting in this direction exists, but the outcome of the negotiation is not obvious since, as has been said, a unanimous resolution of the 27 is required in this field.
Two possible mechanisms for the oil and coal embargo
The European Commission is therefore evaluating at least two possible mechanisms to implement the energy embargo on oil and coal imports from Russia:
- The first follows the sanctions already tested against Iran and foresees payment for supplies to an account that is unblocked only in exchange for the respect of certain conditions (such as a truce).
- The second involves introducing a tariff on oil imports from Russia, which could be 10%. The idea is that quotations are now so high that Moscow could not pass the burden on the final price, because at that point it would become more convenient for Europeans to buy crude oil from African or Gulf countries. For Europe, introducing the duty would involve an estimated revenue of around 5 billion, according to European estimates collected by Corriere della Sera. The figure could serve to compensate European companies damaged by the energy shock.
Europe's stated goal is to find a way to increase pressure on Putin and force him to be more willing to negotiate, but the Commission led by Ursula von per Leyen will have to deal with individual national interests in the debate among the 27.
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