EU finalises sixth package of sanctions against Russia, includes partial oil embargo

After much bickering with Hungary, the European Union has given final approval to fresh sanctions on Russian energy and the country's largest bank, Sberbank, as retaliation for Russian President Vladimir Putin's invasion of Ukraine on February 24. EU leaders agreed on Thursday, June 2, to a partial embargo on crude oil imports that will take effect by the end of 2022, despite being accustomed to ample supply of Russian energy.

Meanwhile, Hungary and two other landlocked Central European countries received exemptions for pipeline imports on which they rely. The sanctions, according to Slovakia's sole oil refiner, Slovnaft, a unit of Hungary's MOL, will block oil product exports to its important markets of the Czech Republic, Austria, and Poland after eight months, as well as make it impossible to serve the home market.

Three more Russian state media sources were also barred from participating in the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system as part of the sixth wave of sanctions, as was Russia's largest bank, Sberbank. The Russia-Ukraine war has strained relations between Moscow and the West to new lows, with recent EU sanctions slashing 90% of Russian oil shipments to the 27-nation bloc of 450 million people.

Sanctions will reduce Russia’s capacity to finance its war: Leyen

The sanctions, according to European Commission President Ursula von der Leyen, "will reduce Russia’s capacity to finance its war."

Patriarch Kirill of the Russian Orthodox Church, a close Putin loyalist, is one famous person who will not be banned, despite preparations to the contrary. Hungary's resistance prevented the required EU unanimity. Hungary had raised its demands over the oil embargo in recent weeks, and in order to appease Budapest, other EU members agreed to water it down by exempting oil sent via the Druzhba pipeline to Hungary, Slovakia, and the Czech Republic.

The action is viewed as the most powerful set of sanctions against Moscow to date, following five waves of punishment that have wreaked havoc on the Russian economy. Putin's reputed lover Alina Kabaeva, as well as military members suspected of war crimes in Ukraine, have been added to the asset freeze and visa restriction blacklist. The measures will be formally adopted later this week, when they are published in the European Union's official journal.

Image: AP