On May 30, the European Union (EU) reached an agreement to ban 90% of Russian oil imports by yearend.
The move would immediately impact 75% of oil imports from Russia, cutting a huge source of financing for its war machine, said Charles Michel, president of the European Council.
The embargo is part of the EU’s sixth sanctions package against Russia since its invasion of Ukraine in late February. Talks to impose an oil embargo have been ongoing since early May.
The sanctions package includes other hard-hitting measures: cutting off Sberbank—Russia’s largest bank—from the SWIFT international payments system, banning three more Russian state-owned broadcasters, and sanctioning individuals responsible for war crimes in Ukraine.
According to Ursula von der Leyen, president of the European Commission, the EU-wide ban would affect Russian oil arriving by sea—about two-thirds of imports, with a temporary exception for crude oil delivered by pipeline.
“This is an important step forward. We will soon return to the issue of the remaining 10% of pipeline oil,” said von der Leyen.
The move comes at a time when Russia has disrupted supplies to five EU member states: Finland, Bulgaria, and Poland; and now, to a company in the Netherlands and to a company in Denmark.
Oil prices climbed on news of the EU embargo, with Brent rising above $120/bbl, the highest level since March.
