- European Union leaders reached an agreement on a Russian oil embargo on Monday.
- The important measure is aimed at punishing the Russian leadership for its invasion of Ukraine.
- The embargo will reduce about 90% of oil imports from Russia into the European Union by the end of 2022.
European Union leaders on Monday reached an agreement on a Russian oil embargo, the chief of their executive branch said on Monday, a notable measure that officials have been negotiating for months and aimed at punishing the Russian leadership for its invasion of Ukraine.
“This will lead to an effective reduction of about 90 percent of oil imports from Russia to the European Union by the end of the year,” European Commission President Ursula von der Leyen said in a statement. tweet Monday.
The ban is the latest punishment imposed by world leaders on Russia this year in an attempt to weaken the country’s financial position and end the atrocities it committed under President Vladimir Putin.
The European Union imposed a wide range of sanctions on Russia, including a ban on the import of iron and steel, and the United States also banned Americans from providing advisory services to people in Russia.
Oil has always been an important part of the Russian economy. Russia is one of the world’s largest crude oil producers and relies heavily on oil and natural gas revenues, which made up 45% of its federal budget last year, according to the International Energy Agency. Before the war, Russia accounted for about half of Europe’s annual diesel imports of 1.2 million barrels per day, or 10% of its total diesel consumption, HSBC analysts told clients in a report this month.
“This immediately covers more than two-thirds of Russia’s oil imports and cuts off a huge source of financing for the war machine,” said Charles Michel, President of the European Council, in a statement. tweet Monday. Maximum pressure on Russia to end the war.
Bank of America analysts said on Friday that European crude oil imports from Russia had already fallen by about 700,000 barrels per day, and “could decline further if oil sanctions are eventually imposed.”
Crude oil prices traded around two-month highs on Monday.
Since the Russian invasion in February, the United Nations has recorded 4,074 civilian deaths and 4,826 civilian casualties in Ukraine. The Office of the United Nations High Commissioner for Human Rights estimates that these numbers are much higher.
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