European leaders reached an agreement late last night to ban Russian oil imports. That would come into effect by the end of this year. Initially, it concerns an embargo on oil imported by sea, which will ban two-thirds of all Russian oil. Including a Polish-German import ban, a total of more than 90 percent of Russian oil is withdrawn from the market.
Oil supplied via the Druzhba pipeline (the longest oil pipeline in the world) will remain outside the boycott for the time being. On Wednesday, the ambassadors of the member states will discuss the details.
It was European Council President Charles Michel who confirmed the agreement around 11.45 pm. According to him, the embargo "cuts off a major source of funding from the Russian war machine". In this way, Europe is putting maximum pressure on Russia to end the war in Ukraine, Michel said.
The European Union plan indicated that still think that this war will end by the end of Year.
A common man like me thinks replacing energy supply is not easy. Consumers will have to pay heavy price for this. This kind financial sanctions will hurt both sides.
I think it would be foolish that they think that can end Russia decades-long dominance of energy market.
European companies also sell machinery, transport equipment, chemicals, medicines and agricultural products to Russian.
European Union imports 84% of their oil and 76% of natural gas from Russia. Germany is the single biggest importer of oil and gas from Russia.
IEA’s 10-point plan looks good in paper but it will be difficult to implement and reduces reliance on Russian supplies.
Even Americans are feeling the impact of the conflict in Ukraine. Americans are witnessing higher prices at gas stations and grocery stores.
European leaders can import oil from other routes. I wonder how they plan to end their natural gas dependence on Russia.
Everyone agrees that replacing Russian energy will be costly. The question is: Why do they want to put more burden on their citizens.