Europe’s unity on sanctions against Russia “is starting to plummet,” the German economy minister warned, while diplomats stressed the ongoing divisions over a package of sanctions that member states will discuss on Monday.
Robert Habeck spoke when EU ambassadors meeting in Brussels on Sunday failed to reach an agreement on the bloc’s latest package of sanctions against Moscow, including a plan to halt imports of Russian oil that Hungary has been blocking since weeks ago.
Diplomats hoped to agree on measures to put EU leaders due to start a two-day summit on Monday.
“After Russia’s attack on Ukraine, we saw what could happen when Europe is united. Looking ahead to tomorrow’s summit, we hope that it will continue like this. But it is already starting to sink and sink again,” he said. Sunday Habeck, who is also vice chancellor, told reporters in Germany.
His comments underscore the EU’s difficulty in finding a way to spread the punishments in Moscow over its war in Ukraine without affecting parts of the European economy that are heavily dependent on Russian oil and gas deliveries.
“Europe is still a huge economic area with incredible economic power. And when it’s united, it can use that power, ”Habeck said at the opening of a trade show.
According to three EU diplomats, EU diplomats tried to unite on Sunday in a compromise plan to impose a embargo on Russian maritime oil purchases and exempt imports by pipeline. This would cover about two-thirds of European imports of Russian oil, but avoid hitting oil flowing to Hungary and other countries, including Germany.
The potential solution is seen as a way to address oil security concerns raised by Hungary, Slovakia and the Czech Republic.
“The problems are the same, but the way we are trying to resolve them is different,” said a senior EU diplomat, who added that it could take a few more weeks until a final agreement is reached.
EU diplomats are expected to meet again on Monday morning ahead of a European Council meeting in a last-ditch attempt to avoid a bitter disagreement during the summit.
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Some officials are concerned that treating Russian crude oil deliveries differently depending on how they enter the bloc could lead to distortions in the oil market.
“Many countries have pointed out that this is such a complicated economic sector, that we must be careful to preserve a level playing field,” said an EU diplomat with direct knowledge of the talks. “The legal aspects need to be adjusted, so it may take longer,” the diplomat said.
Issues still to be resolved include the technical adjustments needed for Central European refineries to handle different supplies, as well as the construction and financing of alternative pipelines so that all Russian oil can be subjected to an embargo at a later stage.
The package of sanctions under discussion is the sixth proposed by Brussels since the invasion began in February. The EU has already imposed sanctions on coal, but made it possible for countries to continue buying gas in Moscow.