After Surprise Oil Compromise, Focus On EU Energy & Food Sec.

In the wake of the surprise compromise reached by EU leaders late last night on a partial embargo on the import of Russian oil, focus at the special European Council meeting turns to EU energy policy (notably the RePower EU plan) as well as regional and global food security.

• As noted in our political risk bullet (see 2320BST) and our energy bullets (see 0752BST and 0830BST), EU leaders came to an agreement last night that sees oil imports banned in principle, with exceptions for pipeline oil via the southern Druzhba line.
• Prior to the summit the mood from EU leaders had been downbeat, with Commission President Ursula von der Leyen stating on her arrival that there were 'low expectations' for a deal, while Hungarian PM Viktor Orban stated that there was 'no agreement because of the irresponsible behaviour of the Commission'.
• Today, focus on the RePower EU proposal from the Commission, and food security. RePowerEU is the Commission's long-term plan to disconnect the EU from Russian energy via diversifying supply lines and boositng renewables.
• On food security, African Union head, Senegalese President Macky Sall, will join via videolink. Major concerns in EU and AU about both shortages and major price spikes exacerbated by the war in Ukraine. In some North African states heavily reliant on cheap Russian and Ukrainian grain there are concerns of civil unrest should prices spike further.