# EU split on Russia oil sanctions Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-03-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: EU Divided on Sanctions Against Russia's Energy Sector Meta Description: Find out why the EU foreign ministers are divided over imposing sanctions on Russia's energy sector for its invasion of Ukraine, amidst fears of URL: https://financedigest.com/eu-split-on-russia-oil-sanctionshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-03-21t091453z2lynxnpei2k00xrtroptp4ukraine-crisis-eu-summit-fiscal-1736815952251-compressed.jpg) By Sabine Siebold and Ingrid Melander BRUSSELS (Reuters) – The European Union’s foreign ministers disagreed on Monday on whether and how to slap sanctions on Russia’s lucrative energy sector over its invasion of Ukraine, with Germany saying the bloc was too dependent on Russian oil to decide an embargo. The EU and allies have already imposed a panoply of measures against Russia, including freezing its central bank’s assets. Russia’s siege and bombardment of Mariupol port, which EU foreign policy chief Josep Borrell called “a massive [war crime,” is increasing pressure for action](https://www.financedigest.com/analysis-action-wanes-at-u-n-to-isolate-russia-almost-six-months-into-ukraine-war.html "Analysis: Action wanes at U.N. to isolate Russia almost six months into Ukraine war"). But targeting [Russian oil](https://www.financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposed.html "Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed"), as the United States and Britain have done, is a divisive choice for the 27-nation EU, which relies on Russia for 40% of its gas. Some argued on Monday that the EU could no longer avoid such a step. Looking at the extent of the destruction in Ukraine right now, it’s very hard to make the case that we shouldn’t be moving in on the energy sector, particularly [oil and coal,” Irish Foreign Minister Simon Coveney said before a meeting](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") of counterparts, echoing comments from the Baltic countries. But Germany and the Netherlands said the EU was dependent on [Russian oil and gas and could not cut](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") itself off tomorrow. The question of an oil embargo is not a question of whether we want or don’t want (it) but a question of how much we depend on oil,” [German Foreign Minister](https://www.financedigest.com/german-minister-says-on-right-track-to-solving-co2-emitting-car-row.html "German minister says ‘on right track’ to solving CO2-emitting car row") Annalena Baerbock told reporters. Germany is importing a lot (of [Russian oil](https://www.financedigest.com/factbox-u-s-offers-new-details-on-plan-to-cap-russian-oil-prices.html "Factbox-U.S. offers new details on plan to cap Russian oil prices")) but there are also other member states who can’t stop the oil imports from one day to the other. If we could we would do it automatically,” she said, adding that the bloc should instead work on reducing its reliance on Moscow for its [energy needs](https://www.financedigest.com/swedish-energy-minister-need-to-decouple-gas-from-electricity-price.html "Swedish energy minister: need to decouple gas from electricity price"). Diplomats cautioned that energy was one of the most [complex sectors](https://www.financedigest.com/board-report-highlights-complex-decision-making-process-across-banking-and-finance-sector.html "Board Report Highlights Complex Decision-Making Process Across Banking and Finance sector") to sanction because each EU country has its own red lines. “Sanctions are exponential,” one diplomat said. “The further you go, the more difficult it is to adopt them.” EUROPEAN SPLITS Diplomats have said a Russian chemical [weapons attack in Ukraine](https://www.financedigest.com/south-korea-has-not-supplied-lethal-weapons-to-ukraine-president-says.html "South Korea has not supplied lethal weapons to Ukraine, president says"), or heavy bombardment of the capital, Kyiv, could be a trigger for an energy embargo. They said that while some countries want an oil embargo, Germany and Italy, which depend on Russian gas, are pushing back because of already high [energy prices](https://www.financedigest.com/heavy-norwegian-gas-maintenance-adds-to-energy-price-pressure.html "Heavy Norwegian gas maintenance adds to energy price pressure"). Sanctions on coal are a red line for some, including Germany, Poland and Denmark, while for others, such as the Netherlands, oil is untouchable. Moscow itself has warned that such [sanctions could prompt it to close a gas pipeline to Europe](https://www.financedigest.com/explainer-what-would-be-the-impact-of-russian-oil-sanctions-in-europe.html "Explainer-What would be the impact of Russian oil sanctions in Europe?") – another potential deterrent. No decision on potential [energy sanctions was expected at the foreign ministers’](https://www.financedigest.com/exclusive-norway-eyes-high-gas-output-until-2030-says-energy-minister.html "Exclusive-Norway eyes high gas output until 2030, says energy minister") meeting, the first of a busy week of talks in Brussels. U.S. President Joe Biden arrives on Wednesday for [talks on Thursday with transatlantic alliance](https://www.financedigest.com/renault-and-nissan-in-talks-that-could-reshape-autos-alliance.html "Renault and Nissan in talks that could reshape autos alliance") NATO’s 30 members, the EU, and a Group of Seven (G7) format including Japan, designed to harden the West’s response to Moscow. The Kremlin has so far not been moved to change course in Ukraine by EU sanctions, [including on 685 Russians and Belarusians and on Russian finance and trade](https://www.financedigest.com/ing-toughens-oil-and-gas-policy-to-include-trade-finance-midstream.html "ING toughens oil and gas policy to include trade finance, midstream"). A fifth round of sanctions is set to include more names on EU blacklists. [Russia invaded Ukraine](https://www.financedigest.com/russia-promises-to-scale-down-operations-in-northern-ukraine.html "Russia promises to scale down operations in northern Ukraine") on Feb. 24, [calling it a “special operation” to demilitarize Ukraine](https://www.financedigest.com/zelenskiy-calls-on-german-chancellor-to-visit-ukraine-on-may-9.html "Zelenskiy calls on German chancellor to visit Ukraine on May 9") and purge it of dangerous nationalists. [Ukraine and the West say](https://www.financedigest.com/natos-support-for-ukraine-is-unbreakable-spains-pm-sanchez-says.html "NATO’s support for Ukraine is unbreakable, Spain’s PM Sanchez says") these are baseless pretexts for aggression. Separately, defence ministers were due on Monday to [discuss a new “strategic compass” military strategy](https://www.financedigest.com/new-zealand-pm-meets-biden-to-discuss-u-s-indo-pacific-strategy.html "New Zealand PM meets Biden to discuss U.S. Indo-Pacific strategy") to adapt the EU for changing geopolitical reality. The document has been tweaked to strengthen [parts related to Russia](https://www.financedigest.com/russia-sanctions-european-gas-companies-polish-part-of-gas-pipeline.html "Russia sanctions European gas companies, Polish part of gas pipeline"), an EU official said. (Reporting by Sabine Siebold, Robin Emmott, Ingrid Melander, Bart Meijer, John Irish; Writing by Ingrid Melander, Editing by John Chalmers and Jonathan Oatis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---