30.1 C
Sunday, June 4, 2023

EU’s embargo plans on Russian Crude oil, raises global price

Oil prices plummeted after EU leaders reached an agreement by Monday to close 90% of Russia’s pollution by the end of the year.

In Asian hours on Tuesday, US crude futures rose more than 2% to $ 117.74, while Brent crude futures rose 0.62% to $ 122.43.

The agreement resolves the closure after Hungary began negotiations. Hungary uses a lot of Russian oil and its leader, Viktor Orban, has had good relations with Russia’s Vladimir Putin.

Charles Michel, president of the Council of Europe, said the move would immediately affect 75% of Russia’s oil exports.


The embargo is part of the European Union’s sixth package of sanctions against Russia since it invaded Ukraine. Negotiations for oil bans since the beginning of this month are ongoing.

“The Council of Europe agrees that the sixth package of sanctions against Russia will include crude oil, as well as petroleum products, imported from Russia to member states, with the exception of piped oil,” according to a May 31 statement from Russia. Council of Europe.

The temporary exceptions include Russian oil that has not been banned, European Commission President Ursula von der Leyen said at a press conference.

“We have agreed that the Council will return to the subject as soon as possible in some way. So this is a topic where we will come back and where we will have to work, but this is a big step forward, we have done today, ”he said of the temporary release.


Von der Leyen explained that the temporary release was allowed so that Hungary, as well as Slovakia and the Czech Republic – all connected to the southern leg of the pipeline – would have access that could not be taken lightly.

The Council of Europe has added that in the event of a “sudden disruption” of a supply, “emergency measures” will be introduced to ensure the security of supply.

About 36% of EU oil imports come from Russia, a country that plays a major role in global oil markets.

Prohibition may increase concerns about the already strong energy market. Energy prices have risen over the past year, which contributes to the volatile inflation rate in many countries.


“Although pipeline exports were not included in the agreement, a ban on imports of marine oil is still significant, accounting for about two-thirds of the EU’s oil exports from Russia,” Vivek Dhar, director of mining and energy assets at the Commonwealth Bank of Australia, wrote in a note.

Support Us

Secured by Paypal

Related Stories

Check out other tags:

Most Popular Articles