EU states decide on oil embargo

The EU states have decided on an oil embargo against Russia. As is so often the case with such decisions, however, there is a compromise with several exceptions. For example, at Hungary’s request, oil deliveries through pipelines are not to be affected. Therefore. Germany and Poland now want to voluntarily renounce deliveries through pipelines.


EU agrees on half-hearted compromise

In the dispute over the oil embargo against Russia, the EU states have agreed on a half-hearted compromise. Due to Hungary’s massive resistance, however, the boycott only affects Russian oil that comes to the EU states by sea. This was confirmed by EU Commission President Ursula von der Leyen after lengthy consultations with the heads of state and government. Accordingly, oil deliveries via pipelines are not affected by the boycott measures.

EU states decide on oil embargo. Hungary wrings many concessions from the EU. Oil supply via pipeline not affected
EU states decide on oil embargo. Hungary wrings many concessions from the EU. Oil supply via pipeline not affected

Olaf Scholz sees compromise as success

For Chancellor Olaf Scholz, the compromise reached is nevertheless a success, as it will severely restrict Russia’s oil exports. According to von der Leyen, oil imports from Russia would be reduced by around 90 percent by the end of the year. Germany and Poland have declared that they do not want to benefit from the exemption for pipeline oil. Therefore, they refrain from importing oil from the only pipeline coming from Russia. The pipeline Druzhba, which means friendship in German, also supplies the refineries in Schwedt and Leuna. A good third of the Russian oil comes through the “Druzhba” pipeline. The remaining two-thirds comes by sea in tankers.


Hungary wrings many concessions from the EU

Hungary has been blocking an agreement on a boycott for weeks, repeatedly referring to its great dependence on Russian supplies. The exemption for oil deliveries via pipelines was therefore probably not the only concession made to Hungary. Viktor Orban had demanded further guarantees in the event that no more oil came to Hungary via the pipeline. Orban pointed out that the pipeline runs through Ukraine and could well be destroyed by the influence of the fighting. The relevant protocol states that “emergency measures will be initiated to ensure security of supply”. In addition, Hungary has demanded financial commitments to finance the reconstruction of its oil infrastructure. The Hungarian government put the costs for this at 550 million euros. Orban is also likely to have received the pledge for this.

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