European Union deal on Russian oil embargo ‘within days’

The European Union is likely to reach an agreement on an embargo on Russian oil imports “within days,” according to the German economy minister.

However, Robert Habeck told German broadcaster ZDF that the decision could also require capping global oil prices. “We will reach a breakthrough within days,” Habeck said on Monday, when asked about an EU oil embargo due to Russia’s invasion of Ukraine.

The minister pointed to the fact that surging global oil prices after the US put an embargo on Russian oil led to the Kremlin significantly improving its oil income despite selling lower volumes. This was the reason why the European Commission and United States were working on a proposal to cap global prices, he said.

“It is obviously an unusual measure, but these are unusual times," Habeck said. "This path only works if many countries get on board... and that's proving to be the sticking point,” he added.

The decision looms even as the EU announced plans to start jointly buying gas before winter. The European Commission’s energy policy chief said the move was intended to reduce the reliance on Russian fossil fuels and build a buffer against further energy supply shocks.

In an interview with Reuters, EU energy policy chief Kadri Simson said that the bloc wanted to start jointly buying gas this year, supported by an EU platform launched last month that would pool countries’ demands and coordinate use of infrastructure to import non-Russian supplies.

Russia supplies 40% of the gas used across the EU, but since the Ukraine crisis has cut off supply to Poland, Bulgaria and Finland, after they refused to pay for the fuel in roubles.

The European Commission last week proposed a plan for how the bloc could quit Russian fossil fuels by 2027, by speeding up investments in renewable energy and energy savings and switching to non-Russian fossil fuels.