Russian Oil: EU Agrees Compromise Deal on Banning Imports

To punish Moscow for invading Ukraine, EU leaders say they will ban most Russian oil imports by the end of 2022. The EU-wide ban will apply to the oil arriving by sea (roughly two-thirds of imports), but not pipeline oil, due to opposition from Hungary. Poland and Germany have also pledged to halt pipeline imports, effectively blocking 90 percent of Russian oil. According to European Council President Charles Michel, the agreement cut off a significant source of funding for Russia's war machine. It is part of a sixth package of sanctions approved at a summit in Brussels by all 27 member countries.

Russia currently supplies the EU with 27% of its imported oil and 40% of its gas. In exchange, the EU pays Russia approximately €400 billion ($430 billion, £341 billion) per year. So far, no sanctions have been imposed on Russian gas exports to the EU, though plans to build a new gas pipeline from Russia to Germany have been halted.

The United Kingdom, which imports 8% of its oil from Russia, has pledged to phase out Russian oil by the end of the year. Oil prices rose as a result of the EU embargo, with Brent crude exceeding $123 per barrel, its highest level since March.