All forms of Russian coal will be banned in the European Union, a move the European Commission says would affect around 8 billion euros ($8.7 billion) of Russian exports a year. Europe plans to cut imports in next four months, EU source says told CNN Business.
“How much longer can Europe ignore the introduction of an embargo against oil supplies from Russia?” said Zelensky.
The European Commission says around 45% of the bloc’s natural gas imports, and around 25% of its oil imports, come from From Russia. The European Union has imported about 35 billion euros ($38 billion) worth of Russian energy since the start of the war.
Coal has always been the easiest target: Europe imports nearly half of its coal from Russia, but demand for the world’s dirtiest fossil fuel was already falling, and alternative supplies are more readily available than for natural gas.
How likely is an oil ban?
Russia is the world’s second largest exporter of crude oil, behind Saudi Arabia, and accounted for 14% of global supply last year, according to the International Energy Agency. Nearly two-thirds of its exports were destined for Europe before Russia invaded Ukraine.
“Yes, we have banned coal now, but now we have to look at oil,” she added.
French President Emmanuel Macron was one of the first leaders to openly support a total ban on Russian oil. Speaking to a French broadcaster on Monday, Macron said there were “very clear signs” that war crimes had been committed in Bucha and that Europe “I can’t let it slide.”
French Finance Minister Bruno Le Maire told CNN on Friday that France did not want to wait to ban Russian oil after seeing the train attack earlier in the day.
“As far as France is concerned, we are ready to go further and decide on an oil ban and I am deeply convinced that the next steps and the next discussions will focus on this issue of the ban on Russian oil”, a- he declared.
More details on the oil sanctions could come as early as Monday, when EU foreign ministers meet for talks. Options on the table include taxing oil imports and requiring buyers to pay into an escrow account that could only be tapped by Russia under certain conditions.
“While we condemn Russia’s armed offensive and we also condemn the war, we will not allow Hungarian families to pay the price of war,” Orban said in a statement in early March.
“Sanctions should not be extended to oil and gas areas,” he added.
Could Europe cope?
The US, UK, Canada and Australia have all announced bans on Russian oil, and a wider de facto embargo has already taken hold as banks, traders, shippers and insurance companies are trying to avoid falling under financial penalties.
European oil companies including Shell, TotalEnergies and Neste have stopped buying Russian crude, or will do so by the end of this year.
Claudio Galimberti, Vice President of Analytics at Rystad Energy, said the impact of an EU oil embargo on Russia would depend on the extent to which it could divert exports to Asia.
“As long as it manages to divert most of its oil exports from Europe to Asia, the impact might be – relatively speaking – not massive. Otherwise, it would completely cripple the Russian economy, as it is highly dependent on oil exports,” he said. CNN Business.
While Europe accounts for more than half of Russia’s oil exports, China is the biggest buyer, accounting for around 20%, according to the IEA.
— CNN’s Chris Liakos, Niamh Kennedy, Mark Thompson, Emmet Lyons and Sugam Pokharel contributed to this report.