France pushing for energy sanctions against Russia
BRUSSELS – French Finance Minister Bruno Le Maire said on Tuesday that all 27 EU countries have “absolute determination” for sanctions against Russia that can target oil and coal based on evidence, its troops said. Intentionally killed Ukrainian civilians.
Europe’s reliance on Russian oil, gas and coal means a consensus on energy measures is a tall order, but reports of killings outside Kyiv have increased pressure for tougher EU sanctions.
So far, Europe has been unwilling to target Russian energy for fear that it would plunge the European economy into recession. In some ways, it will be easier for Europe to go without Russian oil than gas because most of the supply comes from tankers and can be purchased from other suppliers. But talk of a possible boycott of Russian oil has helped prop up global oil prices this week.
Asked whether there was political desire to impose sanctions on Russian oil and coal – a move suggested by French President Emmanuel Macron this week – Le Maire said: “We will see what the position of the other member states will be, but I think that there is likely to be unity among the 27 member states on these new sanctions.”
He didn’t mention natural gas, and it would be even more difficult to secure a consensus on targeting the fuel used to generate electricity and heat homes. The EU gets about 40% of its natural gas from Russia and several EU countries, including Germany – the bloc’s biggest economy – are opposing cuts in gas imports.
France chairs the EU Council, and Le Maire spoke ahead of a meeting of EU finance ministers in Luxembourg, where they will discuss possible new measures to punish the Kremlin.
While the EU has so far shied away from approving Russian energy, individual countries have announced efforts to reduce their dependence: Poland said it plans to block imports of coal and oil from Russia. while Lithuania said it was no longer using Russian natural gas.
The EU gets about 25% of its oil from Russia, while the EU imported 53% of hard coal from the country in 2020, accounting for 30% of EU hard coal consumption.
While coal and oil may be up for discussion, Spain’s Ecological Transition Minister Teresa Ribera said on Tuesday that it is “very difficult” for the EU to approve Russian natural gas because some of the bloc’s countries rely on it for their energy supplies. are dependent. And the strength of the European Union lies in its unity.
“It is very difficult to convince European public opinion and Ukrainian society that we are still importing the Russian energy that finances this war,” he said, adding that energy imports create “obvious moral tensions”.
European importers pay about $850 million a day for Russian oil and natural gas.
Russian natural gas comes mostly from fixed pipeline and with shipments of expensive and scarce liquefied natural gas suddenly it would be hard to replace. While oil may be easier to harvest than gas, digging it will not be without consequences.
For one, the resulting price hike for other oil could increase incentives for India and China, which are not participating in Western sanctions, to buy cheaper Russian crude. Russia is also a major supplier of diesel fuel; If that supply is lost, operating diesel-powered trucks and farm equipment could quickly become more expensive, fueling already high inflation in Europe.
Commodity analysts at German bank Commerzbank said oil prices rose as buyers sought to avoid Russian oil bids for limited supplies from other producers such as Saudi Arabia.
International benchmark Brent rose 3% on Monday and traded up another 1% on Tuesday, above $108 a barrel. US crude rose 1.1% to $104.37 on Tuesday. Crude oil prices fell after US President Joe Biden announced last week that he would drop 180 million barrels of oil from strategic reserves in six months. Higher oil prices mean more expensive gasoline for American drivers.
The next package of EU sanctions will be prepared by the EU’s executive arm, the European Commission, which will submit it to EU countries for approval.
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AP journalist Barry Hatton in Lisbon, Portugal, contributed to this story.
France to push for energy sanctions against Russia first appeared on The Associated Press.
