EU leaders allow Orban to stay out of Russian oil embargo

BRUSSELS, 31 May. (EUROPE PRESS) -

The Heads of State and Government of the European Union have agreed to leave the oil pipeline that supplies Hungary out of the embargo on Russian oil for the time being in order to unblock the sixth package of sanctions that will put an end to imports of this fuel by sea from Russia, which in practice means vetoing at least two thirds of the total oil that reaches the European Union.

This has been announced by the President of the European Council, Charles Michel, through social networks with a message in which he announces an "agreement to prohibit Russian oil exports to the EU", although he specifies that "it immediately covers two-thirds of imports" and not the entire supply. Still, he stressed that the move "will cut off a huge source of funding for the war machine" of Vladimir Putin's regime.

The agreement points to an embargo on all oil imported by sea "before the end of the year" and leaves for a second phase without a precise timetable the development of the embargo applicable to the southern branch of the Druzhba pipeline, which supplies Hungary, the Czech Republic and Slovakia.

The member states will continue to negotiate the details in the coming days to materialize the partial embargo on oil that arrives by sea with the aim of closing that part of the agreement this week, according to European sources.

However, the exemption will take place "as soon as possible", without a set deadline, according to the text of the leaders' conclusions on the formula designed to exempt Hungary from complying with the import veto, given its great dependence on the Russian oil and the difficulties in finding immediate alternatives, due to not having access to the sea that facilitates supply from other suppliers.

In the case of the Czech Republic, an exemption of eighteen months will be granted to give the country time to look for alternatives for certain refined products, Belgian Prime Minister Alexander de Croo explained at a press conference.

Germany and Poland, which are also supplied in part by this pipeline, have made it "clear" with a "political declaration" that they will cut off their imports through the Druzhba tube "by the end of the year", according to the head of the Community Executive, Ursula von der Leyen, at a press conference.

With the commitment of Germany and Poland, which is expected to be formally included in separate notifications to the Commission, the European Union estimates that the partial embargo that will apply in the coming months will affect "more than 90%" of oil, crude and refined , which reaches the community market from Russia.

The offer of an exemption whose expiration has yet to be defined aroused the misgivings of several partners due to the fear that the entry of Russian gas through the pipeline could distort competition in the community market, which is why, according to diplomatic sources, the agreement foresees that the European Commission "monitor" that this situation "does not affect the Single Market" and guarantees equal conditions.

After just over seven hours meeting in an extraordinary summit in Brussels, the leaders have reached a political agreement that supports the sixth package of sanctions that they have been trying to adopt for nearly a month with the reserves of the countries most dependent on Russian crude , especially Hungary, Slovakia and the Czech Republic.

The Government of Viktor Orban has been demanding since this package began to be negotiated in early May to be exempt from the embargo as long as it does not have the necessary infrastructure to open new supply routes, an objective for which it also requests investments by the EU.

The declaration of the Twenty-seven calls for finalizing and adopting "without delay" the sixth package of sanctions, ensuring that the measures and exemptions do not affect the "proper functioning of the Single Market, fair competition and solidarity" between Member States, while guaranteeing the " level playing field" in phasing out Russia's energy dependency.

In the event of sudden interruptions in supply, "emergency measures" must be envisaged to guarantee security of supply, in line with what Hungary demands, in order to be able to supply itself by other means if the flow through the pipeline is interrupted for reasons beyond the country's own control. .

This safeguard also contemplates that the Commission regularly monitors and reports on the way in which these measures are applied, in order to ensure equal treatment in competition matters.

In addition to the measures against oil, this sixth package includes other sanctions such as the inclusion of new names on the list of persons and entities whose assets in the EU will be frozen and the disconnection of the main Russian bank, Sberbank, and two other entities of the system of financial communication Swift. Several Russian state media will also be cut off.

On the other hand, the leaders have reiterated their commitment to continue supporting Ukraine not only in its humanitarian needs but also financially, through macro-financial aid of up to 9,000 million euros in 2022 and specific programs to rebuild the country.

Von der Leyen has added that his Executive will work "from next week" to develop the proposal for this macro-financial aid. EU leaders have also warned that the bloc's support for the reconstruction of Ukraine will be "linked to the implementation of reforms and anti-corruption measures" in line with the community path.