The EU proposes a total ban on Russian oil imports, cutting out crude within 6 months

• The EU has put forward proposals for a total ban on Russian oil imports, phasing out crude within six months.
• European Commission chief Ursula von der Leyen is looking to ban refined products by the end of the year.
• Officials from the 27 countries that make up the EU will meet later on Wednesday to discuss the proposals. 

The European Union has proposed a total ban on Russian oil imports, including cutting out crude within six months, as it seeks to step up the pressure on the Kremlin over the invasion of Ukraine.

European Commission President Ursula von der Leyen said the bloc would wean itself off Russian oil in “an orderly fashion” as she proposed a sixth package of sanctions in a speech to the European Parliament on Wednesday.

She said the EU would phase out imports of Russian crude oil within six months and of refined products by the end of the year.

Officials from the 27 countries that make up the EU will meet to start discussing the proposals later on Wednesday.

“We now propose a ban on Russian oil. This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined,” von der Leyen said.

“We will make sure that we phase out Russian oil in an orderly fashion, in a way that allows us and our partners to secure alternative supply routes and minimizes the impact on global markets.”

Von der Leyen stressed that the move would be costly to the bloc. Russia supplied 25% of the EU’s oil imports in 2021, far more than any other country, official figures show.

“Let us be clear: it will not be easy. Some member states are strongly dependent on Russian oil. But we simply have to work on it,” the Commission President said.

Hungary and Slovakia will get longer to phase out purchases of Russian crude oil, according to reports. They will be able to keep buying under existing contracts until the end of 2023, Reuters reported, citing an EU source, while the Wall Street Journal said they will have a 20-month phaseout. 

The countries, which are reliant on Russian crude imports, have pushed back against the embargo proposal, and the longer phaseout is a bid to convince them not to veto the proposal, according to Reuters.

Brent crude oil was up 2.78% in early European trading to $107.89 a barrel. WTI crude was 2.92% higher at $105.39 a barrel, with a drop in US stockpiles also pushing prices higher.

Dutch TTF natural gas, the European benchmark price, was up 4.2% to 103.61 euros per megawatt-hour.