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The European Union’s top official on Wednesday called on the 27-nation bloc to ban oil imports from Russia and target the country’s biggest bank and major broadcasters in a sixth package of sanctions over the war in Ukraine.
European Commission President Ursula von der Leyen, addressing the European Parliament in Strasbourg, France, proposed having EU member nations phase out imports of crude oil within six months and refined products by the end of the year.
“We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimises the impact on global markets,” von der Leyen said.
The proposals must be unanimously approved to take effect and are likely to be the subject of fierce debate. Von der Leyen conceded that getting all 27 member countries – some of them landlocked and highly dependent on Russia for energy supplies – to agree on oil sanctions “will not be easy”.
The EU gets about 25 per cent of its oil from Russia, most of which goes towards gasolene and diesel for vehicles. Russia supplies about 14 per cent of diesel, S&P Global analysts said, and a cut-off could send already-high prices for truck and tractor fuel towering.
If approved, the ban on oil imports would be the second package of EU sanctions targeting Russia’s lucrative energy industry since the country invaded Ukraine on February 24.
In addition to sanctions on various entities and individuals, including Russian President Vladimir Putin and members of his family, the EU previously approved an embargo on coal imports.
The EU has started discussions on a possible natural gas embargo, but consensus among member countries on targeting the fuel used to generate electricity and heat homes is more difficult to secure. The region gets about 40 per cent of its natural gas from Russia.
Hungary and Slovakia have already said they wouldn’t take part in any oil sanctions. Von der Leyen didn’t elaborate on whether they would receive an exemption from the sanctions, although it appeared likely.
The EU and Russia are playing “a game of chicken. It is hard to say who will swerve/blink first. The Russians, for fear of running out of money. Or Europe, for fear of the lights going out,” James Nixey, the director of the Russia and Eurasia programme at London’s Chatham House think tank, said.
Von der Leyen also said that the EU should target high-ranking military officers and others “who committed war crimes in Bucha,” a suburb of the capital, Kyiv. Ukrainian officials have alleged that retreating Russian troops carried out mass killings of civilians in Bucha.
“This sends another important signal to all perpetrators of the Kremlin’s war: We know who you are. We will hold you accountable. You’re not getting away with this,” von der Leyen told the lawmakers.
EU diplomats confirmed that the European Commission’s plans also include an asset freeze and travel ban on the head of the Russian Orthodox Church, Patriarch Kirill of Moscow. The diplomats have direct knowledge of the discussions but were not authorised to speak publicly as negotiations continue.
Kirill is a long-time Putin ally and has justified Russia’s invasion of Ukraine.
Banks are also in the EU executive arm’s sights, and notably, Russia’s biggest, Sberbank. Von der Leyen said the aim is that “we de-SWIFT Sberbank”. SWIFT is the major global system for financial transfers.
“We will also de-SWIFT two other major banks in Russia. By that, we hit banks that are systemically critical to the Russian financial system and Putin’s ability to wage destruction,” she said.
Von der Leyen added that those alleged to be spreading disinformation about the war in Ukraine would be targeted.
“We are banning three big Russian state-owned broadcasters from our airwaves. They will not be allowed to distribute their content anymore in the EU, in whatever shape or form, be it on cable, via satellite, on the internet, or via smartphone apps,” she said, but did not name them.
