Since the start of the Russian military invasion in Ukraine on
February 24, Western countries have responded by a number of economic and
diplomatic sanctions against Russia. The sanctions are designed to effectively
counter Russia’s continued aggression on the neighbouring country.
Convening
in a summit in Brussels on Monday and Tuesday, the EU leaders agreed, after
several hours of talks, to gradually ban Russian oil imports. The compromise
negotiated with difficulty in Brussels bans only seaborne oil purchases for the
time being, exempting pipeline deliveries following the opposition of Hungary.
The measure
is part of the 6th package of sanctions enacted by the EU since the
start of the Russian-Ukrainian crisis.
The president
of the European Council, Charles Michel, said the measure, which will be
enforced by the end of the year, immediately covers more than two-thirds of the
Russian oil imports, cutting a huge source of financing for [Russia’s] war
machine and delivering maximum pressure on Russia to end the war.
Imports via the Druzhba pipeline,
which also supplies Hungary, will be exempt from the ban in a first stage, after
Budapest used its veto rights to hinder the adoption of the 6th
package of EU sanctions for several weeks. Hungary’s domestic consumption is
65% reliant on the Druzhba pipeline.
Negotiations
are scheduled as soon as possible to move towards banning the remaining of the
Russian oil imports.
Attending
the summit in Brussels, the president of Romania Klaus Iohannis said Bucharest
supported the new sanctions against Moscow.
Meanwhile,
the EU leaders also agreed to remove 3 Russian banks, including Sberbank, from the Swift
global payments system and to ban 3 other state-owned Russian broadcasters. So
far, 7 Russian banks have been denied access to the Swift platform which enables
major banking operations such as interbank transfers.
Also, a
macro-financial aid package worth EUR 9 billion has been approved. The funds
will allow Kyiv to cover its immediate cash demand and to keep its economy
running. According to the Ukrainian authorities, the country needs EUR 5
billion per month. The EU funding will take the form of long-term loans with subsidised
interests. (AMP)