Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

EU Russian Oil Embargo Plans in Trouble as Hungary Rejects Compromise

Published 05/30/2022, 02:49 AM
Updated 05/30/2022, 03:31 AM
© Reuters.

© Reuters.

By Geoffrey Smith

Investing.com -- The European Union's plans to impose an oil embargo on Russia appeared on the verge of collapse on Monday, ahead of a summit meeting of member states' leaders later in the day.

The EU had hoped to finalize plans to stop buying Russian crude oil and refined products by the end of the year. However, the new package of sanctions, the sixth proposed by the EU since Russia invaded Ukraine in February, needs the unanimous backing of member states to come into effect and has been resisted by Hungary and, to a lesser extent, Czechia and Slovakia. The three landlocked countries all have a historical dependence on oil delivered by Soviet-era pipelines.

Germany's Vice-Chancellor Robert Habeck warned at a press conference on Sunday that European unity is "starting to crumble and crumble again," after negotiations between diplomats failed to overcome Hungarian resistance, despite proposals for the embargo to be delayed for the three central European states.

The failure to agree on oil has also led to the package being weakened in other respects, according to various reports. A proposal to ban Russian investment in European real estate has also been dropped from the draft package.

The EU's top diplomat Josep Borrell was, nonetheless, still optimistic on Monday that a deal could be struck.

"I think that this afternoon, we will be able to offer to the heads of the member states an agreement," Borrell told French radio station France Info.

European purchases of Russian oil and gas generate around $1 billion a day in revenue for the Kremlin and are the biggest single source of hard currency for Russia. According to Finance Ministry data, Russian defense spending more than doubled to $300 million a day in April as a result of the war.

Latest comments

since opec is not ready to increase production, EU ban on russian oil will send all oil importing countries to bankruptcy
Stay strong Hungary !! Do whats best for your own country , ad the west always does the same!!!
isn't a watered down compromise signed. I am confused. is this an old story? did they sign an embargo of oil shipped via vessels but not pipeline?
Correct
Blessed Hungary
butchers of Syria and now Ukraine are to be blessed? Russian bot or naive ?
Kick Hungary out
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.