German Minister warns market prices might rise due to EU's oil embargo on Russia

Germany has warned that a ban on Russian oil imports will harm Europe's economy, despite its support for an embargo. vice-chancellor and economy minister of country, Robert Habeck, cautioned on May 2 that a ban, which is now being considered by European Union's 27 members, would raise energy prices for consumers.

According to Financial Times, Robert Habeck stated, "We will be harming ourselves, that much is clear but re's no way this won't come at a cost to us", ding that Europeans should be prepared to bear cost in order to help Ukraine.

German minister said he expects European Commission to recommend a ban on Russian oil imports, according to German news source ZDF. If it takes such a step, he says, oil prices will definitely rise. To get all member nations to agree, though, Habeck said re would have to be a "clever compromise." Hungary has been especially vociferous in its opposition to plan, as it is highly reliant on Russian energy.

Germany, a big Russian importer, has altered its stance in recent days, abandoning its opposition to an oil embargo as long as it has time to prepare. country's dependency on Russian oil dropped dramatically in previous month, according to country's Economy Ministry.

It now imports roughly 12% of its oil from Russia, compared to around one-third in 2021. Germany, on or hand, said it still gets 35% of its natural gas from country. Brent crude fell 1.52% to $105.92 a barrel on May 3, as investors weighed concerns about global economy against threat of an oil ban. WTI crude fell 1.7% to $103.38 a barrel.

European Union imposes ban on Russian oil

Meanwhile, in a recent development, by end of year, European Union wants to restrict all oil imports from Russia and withdraw Sberbank, country's largest bank, from SWIFT international payments network. measures, according to European Commission President Ursula von der Leyen, would be part of sixth set of sanctions against Russia for its invasion of Ukraine.

She stated that crude oil supplies would be phased out in six months and refined oil product imports would be phased out by end of 2022. proposal's news raised crude oil prices by more than 3.5%, albeit it still needs to be approved by all EU member states. At 7.20 a.m. ET, Brent, global benchmark, was tring near $109 a barrel, while US oil futures were tring at $106 a barrel.

(With agency inputs, Image: AP)