Germany "Preparing Oil Embargo on Russia by Summer"... EU to Decide as Early as 4th

"EU May Announce Oil Embargo in 6th Russia Sanctions Meeting"
35% of Russia's Fiscal Revenue Comes from Oil Exports...Sanctions Expected to Be Effective

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] As the German government announced that it is ready to impose an oil embargo on Russia by this summer, an additional EU (European Union) sanctions package against Russia is expected to be announced soon. It is also reported that conditions to exclude or defer participation in the embargo for countries opposing the oil embargo, such as Hungary and Slovakia, are under consideration.

According to CNN on the 2nd (local time), Christian Lindner, German Finance Minister, said in an interview with CNN, "Germany will support the EU's new sanctions against Russia and is preparing new sanctions including an oil embargo," adding, "It was a mistake to become so dependent on Russian energy. It will take more time to break away from natural gas imports, but eventually, we will be completely independent from Russia."

According to the Associated Press, earlier, Annalena Baerbock, German Foreign Minister, and Robert Habeck, German Vice Chancellor, also stated that Germany is ready to ban imports of Russian oil by this summer and can start the embargo. Vice Chancellor Habeck emphasized, "Germany has reduced its share of Russian energy to 12% for oil, 8% for coal, and 35% for natural gas," and said Germany can participate in the EU's oil embargo.

Accordingly, there is a possibility that the Russian crude oil embargo will take effect at the 6th EU sanctions meeting against Russia, scheduled to be held in Brussels as early as the 4th. The Wall Street Journal (WSJ), citing a senior EU official, reported, "Countries still opposing the embargo, such as Hungary and Slovakia, are considering options to exempt them from the import ban obligation or to defer their participation in the sanctions."

Within the EU, opinions are divided, but the dominant voice is that the oil embargo should be implemented quickly. According to CNBC, more than 35% of Russia's fiscal revenue is covered by oil export payments, while natural gas payments account for about 7%. Therefore, the activation of the oil embargo is expected to be the most effective alternative to prevent Russia from financing its war costs.

Countries leading support for Ukraine, such as Poland, are insisting that the oil embargo be implemented quickly. Anna Moskwa, Poland's Climate Minister, strongly demanded at a press conference that "we want this sanction measure to include a clear date and requirements. It must be a complete measure with no loopholes," expressing hope that the embargo will be imposed within this year.