The embargo on gas purchases from Russia was on everyone’s mind on Tuesday following an oil embargo was agreed, but several European leaders pleaded for a “pause” and some even ruled out adopting such a measure .
The sixth sanctions package “is a big step forward. And I think we should take a break now”said Belgian Prime Minister Alexander de Croo on his arrival for the second day of the summit in Brussels.
The leaders of the 27 EU countries reached an agreement on Monday evening which should allow them to reduce their imports of Russian oil by some 90% by the end of the year in order to dry up the financing of the war led by Moscow in Ukraine.
“This package, let’s put it into practice first (…) Gas is much more complicated. So it’s an important step. Let’s stop there for now and see what the impact is”he explained.“We will have to talk regarding a seventh sanctions package because the situation is not improving in Ukraine. But gas is of course much more difficult than oil”underlined the Prime Minister of Estonia Kaja Kallas.
“Gas must be part of the seventh package, but I’m also realistic, I don’t think it will be there”she said.“There is a technical problem that has been solved with Viktor Orban. With gas it is completely different. Therefore, the gas embargo will not be in the next set of sanctions”added Austrian Chancellor Karl Nehammer.
The EU, which has already decided to do without Russian coal from August, has found other suppliers in the United States for a third of its Russian gas purchases.
In 2021, Russia supplied 30% of crude oil and 15% of petroleum products purchased by the EU. It supplies 150 billion m³ of gas annually, or 40% of EU imports.
Fuzziness of payment in rubles
The oil embargo was difficult to adopt because of the difficulties posed to Hungary and Slovakia, two landlocked countries and economically dependent on their oil purchases from Russia.
Russian gas giant Gazprom has cut deliveries to Poland, Bulgaria, Finland and the Netherlands. “These countries have not accepted Gazprom’s payment terms”explained the Austrian Chancellor.
The European Union refuses to pay for gas purchases from Russia in rubles, as demanded by the Kremlin, saying it is a sanctions violation. Energy companies are required to respect the terms of payment of contracts concluded with Gazprom (97% provide for payment in dollars or euros), under the control of the Member States.
Poland and Bulgaria, which refused to open a second account in roubles, stopped being delivered by Gazprom, which considered that the payment had not been made. But not all member states respect the ban. The Austrian group “OMV had good and constructive discussions” with the Russian company, confirmed Karl Nehammer.
German Chancellor Olaf Scholz announced that the subject would “not be discussed during the summit”.
“Nobody wants to buy energy from Russia. Russia, a barbaric country, a country that cannot be relied on in any way”, Polish Prime Minister Mateusz Morawiecki launched on Tuesday. “That is why we are discussing how to quickly move away not only from Russian hydrocarbons like coal or oil, but also, in the longer term, from gas”he explained.
