BRUSSELS: The European Union (EU) proposed banning seaborne oil from Russia while delaying restrictions on imports from a key pipeline in an effort to satisfy Hungarian objections and clinch an agreement on a stalled sanctions package that would target Moscow for its war in Ukraine.
The European Commission, the EU’s executive arm, sent a revised proposal to national governments that would spare shipments of oil through the giant Druzhba pipeline, which is Hungary’s main source of crude imports, according to people familiar with the matter.
Member states would phase out their imports of seaborne crude in six months and refined petroleum products in eight months, said the people, who asked not to be identified because the discussions are private.
The proposal would give more time to Hungary, which has opposed the deal, to find a technical solution that satisfies its energy needs.
It would also address the concerns of other landlocked countries, including Slovakia and the the Czech Republic.
Under the revised draft, Bulgaria would get a transition period until June or December 2024 and Croatia could get an exemption for imports of vacuum gas oil.
The commission also proposed restricting re-exports of Russian oil supplied by pipeline to other member states or third countries.
The commission also appears to have limited the scope of a provision that would affect services linked to the shipment of oil to third countries.
The draft currently prohibits providing technical assistance, brokering services or financing or financial assistance in six months following its adoption.
The previous proposal also included “any other services,” which was understood as a reference to providing insurance for shipments.
EU ambassadors were scheduled to meet later yesterday when they could discuss the revised package.
Some member states are pushing to have an agreement before EU leaders meet in Brussels today to discuss the war in Ukraine.
The sanctions package requires the backing of all member states. — Bloomberg