Ursula von der Leyen has proposed a complete ban on Russian oil imports into the EU, saying Vladimir Putin had to pay a “high price for his brutal aggression” in Ukraine.
Member states in Brussels are reviewing a proposed sixth sanctions package, but in a speech on Wednesday, the European Commission president said Russian oil flows had to be stopped.
Von der Leyen said Russian crude oil supplies would be banned within six months and refined products banned by the end of the year, while acknowledging demands from countries such as Slovakia and Hungary for more flexibility.
“Let’s be clear: it will not be easy,” von der Leyen said in a speech to the European Parliament. “Some member states are heavily dependent on Russian oil. But we just have to work at it. Now we propose a ban on Russian oil. This will be a total import ban on all Russian oil, by sea and by pipeline, crude and refined.
“We will ensure that we phase out Russian oil in an orderly manner, in a way that allows us and our partners to secure alternative supply routes and minimize the impact on global markets.”
Russian imports account for 25% of EU oil imports and are a major source of revenue for the Kremlin, but the level of dependency varies and the Slovak and Hungarian ministers have already said they will seek exemptions from the proposals.
On Wednesday, a spokesman for Hungarian Prime Minister Viktor Orbán said there appeared to be “no plan and no guarantees” for a smooth transition from Russian oil.
Since the start of the war in Ukraine on February 24, the NGO Europe Beyond Coal calculates that the EU has sent some 21,000 million euros to Russia in payment for oil.
The sanctions package will require the unanimous support of EU member states, whose representatives in Brussels have already begun hammering out the details in the hope of reaching an agreement by the end of the week.
According to the draft text, the EU would not only ban imports, but would prohibit any of its citizens and companies from participating in the transportation of Russian oil, ensuring its transfer or maintaining the equipment involved in the movement of fossil fuel.
The move against insurance against oil spills and other unforeseen incidents is significant, as much of the world’s tanker liability cover goes through companies that fall under the jurisdiction of EU law.
As von der Leyen sought to rally the EU to take the next step, he filled his speech with the names of Ukrainian cities and towns that had been subjected to brutal Russian bombing or where evidence of war crimes had been uncovered.
He told MEPs that the EU should also target military figures involved in the massacre of civilians in the city of Bucha, north of kyiv, and in the siege of the port city of Mariupol with restrictive measures, and block the transmission of Russian state television in the 27 member states.
“This sends another important signal to all the perpetrators of the Kremlin war: we know who they are and they will be held accountable,” he said. “With all these steps, we are depriving the Russian economy of its ability to diversify and modernize.”
The EU would also remove Sberbank, Russia’s largest bank, and two other major banks from the Swift payment system, according to the latest sanctions package.
“Putin wanted to wipe Ukraine off the map. It will clearly not succeed,” he said. “On the contrary, Ukraine has risen up in unity. And it is her own country, Russia, that is sinking.”
The EU is preparing to be the main financier of Ukraine’s economic recovery from the war, with billions already committed, but von der Leyen called on the US and others to match those funds.
Ukraine’s GDP was expected to fall by 30% to 50% this year alone, he said, with the IMF estimating that Ukraine would require 5bn euros (£4.2bn) a month “to keep the country going, paying pensions , salaries and basic services”. ”.
“We have to support them, but we can’t do it alone,” von der Leyen said. “I am pleased that the United States has announced massive budget support. And we, as Team Europe, will also do our part.”
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She continued: “Europe has a very special responsibility towards Ukraine. With our support, Ukrainians can rebuild their country for the next generation.
“That is why today I am proposing to you that we start work on an ambitious recovery package for our Ukrainian friends. This package must bring massive investment to meet the needs and necessary reforms. It should address the existing weaknesses of the Ukrainian economy and lay the foundation for long-term sustainable growth.”
Reference-www.theguardian.com