Oil Prices Rise As EU Leaders Agree On Partial Russian Crude Ban

The New Diplomat
Writer

Ad

Akpabio vs. Natasha: Ezekwesili accuses Senate is leading a misadventure to destroy Democracy, rule of law in Nigeria

By Abiola Olawale In a scathing open letter released on Wednesday, a former Nigerian Minister of Education and renowned public policy advocate, Dr. Obiageli Ezekwesili, has accused the Nigerian Senate, led by President of the Senate, Senator Godswill Akpabio, of alleged constitutional violations. Ezekwesili claimed that the Senate allegedly assaulted democratic principles by refusing to…

Arise IIP raises $700m in Africa infrastructure deal, welcomes Saudi Vision Invest as shareholder

By Obinna Uballa Arise Integrated Industrial Platforms (Arise IIP), a pan-African developer and operator of industrial zones, has secured $700 million in fresh capital, marking one of the largest private infrastructure transactions in Africa. The deal, announced Wednesday in Dubai, sees Saudi Arabia’s Vision Invest join as a new shareholder alongside founding investors such as…

2027: INEC Grants Official Recognition to Atiku, Obi, Aregbesola, Amaechi, David Mark’s ADC

By Abiola Olawale The Independent National Electoral Commission (INEC) has formally recognized the African Democratic Congress (ADC) under the leadership of former President of the Senate, David Mark. This endorsement positions the party as a key contender ahead of the 2027 general elections. The confirmation was displayed on the website of INEC and sighted by…

Ad

  • EU leaders agreed to cut Russian crude oil imports by as much as 90 percent by the end of the year.
  • Germany and Poland have agreed to stop buying Russian crude from the Druzhba pipeline at the end of 2022
  • Meanwhile, Hungary, the Czech Republic, and Slovakia will be exempt from the embargo.

The European Union leaders agreed to cut Russian crude oil imports by as much as 90 percent by the end of the year. The agreement is in principle, and details would still need to be clarified.

Per a Reuters report, some 65 percent of Russian oil exports to the European Union reach the continent by tankers, with the rest flowing via the Druzhba pipeline. By the end of the year, Germany and Poland have agreed to stop buying Russian crude from the Druzhba pipeline, which would bring the amount of embargoed Russian oil to 90 percent of the total.

The embargo seeks to first target tanker shipments, which will put those EU members who get their Russian oil this way in a difficult position. For the time being, there is no clarity as to how these EU members will be compensated.

Meanwhile, Hungary, the Czech Republic, and Slovakia will be exempt from the embargo, leaving 10 percent of usual Russian oil flows in place. There was no mention of Bulgaria in the Reuters report, but the southern European state was also part of the group of countries opposing any embargo that could threaten the security of its oil supply.

The European Commission proposed a full oil embargo against Russia in early May as part of its latest sanction package. Hungary, however, immediately and quite vocally opposed it, arguing it would need hundreds of millions of dollars to transform its pipeline and refinery industry. The Central European state relies on Russia for more than 80 percent of its oil.

The following weeks saw active discussions as more EU members heavily reliant on Russian oil followed Hungary’s example, with Bulgaria threatening a veto on any embargo proposal unless it received an extension to reduce and eventually eliminate Russian oil imports.

Following the news of the embargo agreement, Brent crude was trading at $122.63 per barrel, with West Texas Intermediate at $117.99 per barrel.

NB: Irina Slav wrote this article for Oilprice.com

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp