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Home›Hungary banks›EU leaders tackle Russian fossil fuel loophole

EU leaders tackle Russian fossil fuel loophole

By Arthur Holmes
March 10, 2022
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BRUSSELS, March 10 (Reuters) – European Union leaders will on Thursday discuss ways to wean themselves off Russian fossil fuels and debate how quickly to ditch their main supplier, with countries divided on whether to sanction imports of oil and gas as Moscow waged war on Ukraine. .

Russia’s invasion of Ukraine prompted Brussels to unveil plans this week to reduce dependence on Europe’s biggest gas supplier this year and end it within a decade.

How to implement these plans, let alone how to finance them, will be a key topic under discussion at a two-day summit in Versailles, France. Read more

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A draft summit statement, seen by Reuters, would agree to phase out the EU’s dependence on Russian gas, oil and coal imports, including by increasing imports of liquefied natural gas and accelerating the deployment of renewable energies. He did not set a date for the phasing out. Read more

“Some are asking for 2030, some are asking for 2027, some are saying now,” an EU official said, referring to member states.

The 27 EU countries depend on Russia for 40% of their collective gas needs, 27% of oil imports and 46% of coal imports.

Russian gas flows to Europe have continued apace since the invasion, which Russia calls a “special military operation”, but Moscow has warned that Western sanctions on its oil could prompt it to shut down a major gas pipeline to Europe.

EU leaders will also discuss contingency plans in the event of a supply disruption.

“We cannot rule out that Russia will take retaliatory measures,” said EU energy policy chief Kadri Simson.

The United States, which is less dependent on Russian energy, banned imports of oil and gas from Moscow on Tuesday, while the EU has so far focused its measures on banks and oligarchs, banned planes Russians in EU airspace and halted technology exports.

Approval from all 27 member states would be needed, but EU officials say German Chancellor Olaf Scholz’s stance of refusing to sanction energy imports is shared by other countries.

Germany receives 18% of Russia’s gas exports and 11% of its oil.

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“While we condemn Russia’s armed offensive and we also condemn the war, we will not allow Hungarian families to pay the price,” Hungarian Prime Minister Viktor Orban, who opposes energy sanctions, said on Tuesday. Hungary imports most of its oil and gas from Russia.

Other countries say the hundreds of millions of euros a day Europe pays Russia for fossil fuels must end – even if it hurts Europe’s economy and pushes energy prices even higher .

“Billions are coming to Russia via Nord Stream 1,” a Polish diplomat said, referring to a gas pipeline linking Russia to Germany. “These are billions for which today Ukrainians are paying with their own blood.”

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Reporting by Kate Abnett; additional reporting by Krisztina Than; Editing by Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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