Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
Home Headlines EU considers more funds for eastern states in bid for deal on Russia oil ban
Headlines

EU considers more funds for eastern states in bid for deal on Russia oil ban

by jcp May 9, 2022
May 9, 2022
gawdo

By Francesco Guarascio

BRUSSELS (Reuters) -The European Commission is considering offering landlocked eastern European Union states more money to upgrade oil infrastructure in a bid to convince them to agree to an embargo on Russian oil, an EU source told Reuters on Monday.

The measures are part of a wider package of new sanctions against Russia for its invasion of Ukraine, but the adoption of the legal text still needs an agreement on the size of the investment, the source said, adding another sticking point was Cyprus’s concerns about a proposed ban on the sale of real estate to Russians.

Horse trading after the Commission put forward its original sanctions document last week has delayed approval and the text has already been revised once to try to win over sceptics.

A new version, currently being drafted, is likely to drop a ban on EU tankers carrying Russian oil, after pressure from Greece, Cyprus and Malta, the source said, declining to be named because of the sensitivity of the matter.

EU companies would, however, be prevented from offering insurance and other financial services for the transport of Russian oil worldwide, the source added, noting that on this point the original proposal would remain unchanged.

Whereas most EU states will have to fully implement a Russian oil embargo by the end of the year, Hungary – one of the most vocal critics of the new sanctions package – has already obtained an exemption until the end of 2024, as has Slovakia, and the Czech Republic would have until mid-2024.

The three countries are the only eastern EU states with no access to the sea, and therefore risk a bigger economic impact from banning Russian oil.

EU officials say their concerns are legitimate and are now considering spending more than initially planned to upgrade and extend pipelines that would deliver oil from other EU countries.

The source declined to comment on the size of the investment, but noted it was not to be calculated in billions of euros, rather far less.

The EU is withholding 7.2 billion euros ($7.5 billion) in EU post-COVID recovery funds to Hungary over concerns about the rule of law, and diplomats have said that Budapest may be trying to link the oil embargo talks with disbursement of the blocked funds.

Dismissing this, the source said additional funding would be provided for pipeline investment and there was still a debate about whether such money could also be used to upgrade oil refineries in eastern European countries, many of which can currently only process Russian oil.

CYPRUS

The other open issue concerned Cyprus, where many Russians have invested in property, something the EU wants to ban under the new proposals.

Talks are underway about legal issues that would allow a compromise on this, the source said.

The ban on insurance and other financial services for tankers carrying Russian oil is considered a potential serious hurdle to Russian oil exports to China and other trade partners outside the EU, but it is unclear just how effective it would be.

“Nations with less rigorous sanctions protocols may be in a position to import Russian oil using their own flagged shipping and their own national insurance arrangements,” said Marcus Baker, global head of marine & cargo for insurance broker Marsh.

($1 = 0.9486 euros)

(Reporting by Francesco Guarascio in Brussels; additional reporting by Carolyn Cohn in London; Editing by Alex Richardson, Mark Potter, Kirsten Donovan)

www.gawdo.com
Share on FacebookShare on TwitterShare on Linkedin
0 FacebookTwitterPinterestEmail
previous post
ConocoPhillips plans $1.1 billion investment as Norway oil sector heats up
next post
Bitcoin falls to 22-month low as stock markets tumble

You may also like

Russian missiles rain down on Ukraine as West...

June 29, 2022

NATO deal with Turkey greeted with caution and...

June 29, 2022

Doctors, bankers protest ‘impossible situation’ as Sri Lanka...

June 29, 2022
Editorial & Advertiser disclosureEditorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
gawdo.com
https://www.gawdo.com
  • About us
  • Advertising & Terms of Use
  • Contact Us
  • Privacy Policy

@2021 - All Right Reserved.


Back To Top
Startup Observer.com
  • Home
  • Industries
  • Innovation
  • outsourcing
  • Business
  • Finance
  • Headlines
  • Opinion
  • News
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT