European Union (EU) leaders on April 7 agreed to ban Russian coal imports in the fifth round of sanctions targeting this country because of the conflict in Ukraine.
This is the first time Europe has punished Russia’s energy sector.
The EC said Russia provides about 45% of imported natural gas and 25% of imported oil to this bloc.
Coal is the easiest target.
How high is the possibility of banning oil imports?
Russia’s Kozmino oil port.
Russia is currently the world’s second largest crude oil exporter, after Saudi Arabia, and contributes 14% of global supply, according to the International Energy Agency (IEA).
Last month, Europe set a goal of ending its dependence on Russian oil and gas by 2027.
French President Emmanuel Macron was one of the first leaders to publicly support a complete ban on Russian oil.
Yesterday, French Finance Minister Bruno Le Maire also confirmed on CNN that France did not want to wait for a ban on Russian oil after witnessing the railway attack in Ukraine yesterday.
German Prime Minister Olaf Scholz announced yesterday that Germany may stop importing Russian oil `this year`.
Details of this discussion could be announced as early as next week, when EU foreign ministers meet.
Besides, convincing all EU members to agree is also a challenge.
`We will not make Hungarian families pay for this war,` he said in early March. `Sanctions should not be extended to oil and gas.`
Can Europe cope?
Although sanctions on Russian natural gas are currently impossible, given the potential economic consequences, Europe is still more resilient if it bans Russian oil.
European oil companies, including Shell, TotalEnergies and Neste, have all stopped buying Russian oil, or will stop completely by the end of the year.
In recent days, rich countries have pledged to release their reserves to lower oil prices and cope with reduced supply from Russia.
Claudio Galimberti – Vice President of Analysis at Rystad Energy said the impact of the oil ban on Russia will also depend on Russia’s ability to shift exports to Asia.
