Oil embargo against Russia: Federal government supports EU plan

Created: 05/01/2022, 02:55 p.m

By: Caroline Schäfer

Federal Chancellor Olaf Scholz (SPD) and Robert Habeck (Greens), Federal Minister for Economic Affairs and Climate Protection.

© Michael Kappeler/dpa

An oil embargo seems increasingly likely.

The federal government is now supporting the EU's plans for an import ban on Russian oil.

Berlin - An energy embargo is discussed again and again in Germany in view of the Ukraine war.

According to Economics Minister Robert Habeck (Greens) and other politicians, the current political situation in Ukraine requires above all a renunciation of Russian oil.

Apparently that should come sooner than expected.

According to information from the German Press Agency (dpa), the federal government with Chancellor Olaf Scholz (SPD) is supporting European planning for an import ban on Russian oil.

In the preliminary talks on a new package of sanctions against Russia, the government in Berlin had clearly spoken out in favor of introducing an embargo, as the dpa learned from EU diplomats in Brussels at the weekend.

Sanctions against Russia in the Ukraine war: Oil embargo increasingly likely

This means that only Hungary, Austria, Slovakia, Spain, Italy and Greece are holding back a corresponding decision by the European Union (EU).

According to the diplomats, countries such as Slovakia and Hungary continue to oppose an import ban, mainly because of their heavy dependence on Russian oil supplies.

Spain, Italy and Greece, on the other hand, fear an enormous increase in energy prices for consumers.

But what is behind the change of course in the Federal Republic?

Apparently the search for alternative oil suppliers could have been successful.

Habeck announced last Tuesday (April 26, 2022) that Germany's dependence on Russian oil had been reduced from 35 percent before the start of the Ukraine conflict to 12 percent within eight weeks.

New EU sanctions package planned against Russia

According to dpa information, the EU Commission is planning to present the draft for a new package of sanctions against Russia as soon as possible.

However, since some states have expressed concerns, an oil embargo could last until autumn or winter.

According to economists, an abrupt halt to oil imports could temporarily cause prices on the world market to skyrocket.

Transitional periods could mitigate the effect of an embargo, it said.

“It would certainly lead to regional congestion, it would certainly lead to higher prices, there would also potentially be local disruptions.

So you can't say nobody notices.

But it would no longer lead to a full catastrophe,” explained Habeck.

(kas/dpa)

Meanwhile, the previous sanctions against Russia are apparently having an effect.

Russian oil production is declining significantly.