EU Struggling To Agree On Full Russian Oil Ban—Here’s Why

Topline

Talks to impose a sweeping ban on Russian oil imports to the European Union have appeared to falter, with the bloc still discussing carve-outs that could effectively exempt countries like Hungary, multiple news outlets reported Monday, as the EU seeks to punish Russia for invading Ukraine while limiting economic consequences at home.

Key Facts

Surprising Fact

Most Russian oil arrives in the EU by ship, so a bloc-wide embargo that only applies to maritime imports would still likely cut off most Russian petroleum shipments. However, Hungary, Slovakia and the Czech Republic—three landlocked countries—are more reliant on oil transported over land via the Druzhba pipeline system.

Tangent

Germany—which is the EU’s largest economy—is aiming to cut itself off from Russian oil later this year, and Bloomberg reported this month German officials plan to follow through with the move regardless of whether the rest of Europe follows. Since Russia’s invasion of Ukraine began, Germany has rapidly cut back imports of oil and natural gas via Russian pipelines, despite previously relying heavily on Russia for its energy.

Key Background

In the months following the Ukraine invasion, the EU’s 27 members have sanctioned Russian financial institutions, elites and key industries. Earlier this month, von der Leyen proposed banning all Russian oil from the EU within six months, a broad embargo that followed an EU plan to block Russian coal imports. Restricting oil exports to the EU would deprive Russia of a key source of revenue, but it would require many European countries that have historically relied on Russian oil to quickly seek out alternative energy sources.