EU Leaders Agree On Partial Embargo On Russian Oil

European Union leaders agreed to impose a partial ban on Russian oil imports as part of the sixth package of sanctions against Moscow over its ongoing invasion of Ukraine, European Council President Charles Michel confirmed.

• The sanctions will prohibit seaborne imports of crude oil and petroleum products from Russia, with a temporary waiver for pipeline crude.
• Michel tweeted that "this immediately covers more than 2/3 of oil imports from Russia, cutting a huge source of financing for its war machine."
• "This sanctions package includes other hard-hitting measures: de-Swifting the largest Russian bank Sberbank, banning 3 more Russian state-owned broadcasters, and sanctioning individuals responsible for war crimes in Ukraine."
• Per Bloomberg calculations, sanctions on seaborne supplies of crude oil would cost Russia up to $10bn per year in lost revenue, forcing Moscow to sell crude at a discount to Asia.
• Bloomberg reported that leaders have also proposed prohibiting insurance on oil shipments to third countries, but the transition period has been extended to six months from the three months originally proposed by the European Commission.
• The deal had been held up by Hungary, which accused the EU of forcing the decision on member states. Bloomberg sources said that Hungary's Victor Orban demanded that the discussion on restricting pipeline imports happened between EU leaders rather than lower-level officials.
• The technical details still need to be ironed out by officials and diplomats after EU leaders greenlighted pressing ahead with the new sanctions package.