Understand why Europe fears Russia’s oil blockade

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The United States has said it is talking to European allies about barring Russian oil imports, but the European Union is not ready to play. Germany led the way this Monday (7) by explaining why the bloc is not following suit – at least for now.

US Secretary of State Antony Blinken said over the weekend that there was a “very active” discussion with European allies over the possibility of banning Russian oil imports.

As active as this dialogue is, it does not appear to be producing a harmonized approach. While the Biden administration has signaled its willingness to freeze Russian oil imports, Olaf Scholz, Chancellor of Germany, has rejected the idea.

“All of our steps are designed to hit Russia hard and be sustainable over the long term,” Scholz said in a statement on Monday. “Right now, Europe’s energy supply for heating, mobility, power supply and industry cannot be guaranteed otherwise. It is therefore of fundamental importance for the delivery of public services and for the daily lives of our citizens. “

Germany’s position, which is being mirrored at the European Union level, marks an unusual divergence after two weeks of impressive transatlantic synchronization of sanctions. But it reflects contrasting political realities in Washington and Europe.

The Biden administration is under intense pressure on Capitol Hill for an oil blockade — including by top Democrats — a move that polls suggest would have popular support despite rising pump prices. Given the percentage of Russian budget revenues that derive from the oil industry, supporters of the measure argue that it would hit a major source of funding for Vladimir Putin’s invasion of Ukraine, inflicting significant damage on his war effort.

In Berlin, however, politicians are keenly aware that the country is far more dependent on Russian natural resources — more than 55% of Germany’s imported gas comes from Russia, as does half of its coal and 35% of its oil. Germany is by no means the only one in Europe that is so dependent on Russian fossil fuels.

If the EU and the US imposed simultaneous restrictions on oil imports from Russia, the rise in crude oil prices could be extreme. So some officials argue that it might be less harmful for the US to move alone, at least at this stage, dismissing the idea that there is any transatlantic disagreement over the sanctions strategy.

There is also an argument for the EU to keep more sanctions firepower in reserve, leaving room to step up its reaction to Putin if necessary.

The collateral damage from existing rounds of sanctions is already enough to raise concerns about the strength of the EU’s economic recovery, meaning many capitals see arguments to pause and consider the impact of the current penalty package before contemplating an attack on something. as sensitive as Russian energy exports.

Mark Rutte, Prime Minister of the Netherlands, warned yesterday of the “huge ramifications” that would result from an immediate ban on Russian fossil fuels. “The painful reality is that we are still heavily dependent on Russian oil and gas,” he said.

Rising oil and gas prices caused by the conflict in Ukraine and Western measures to punish Moscow have heightened the threat of the worst stagflationary shock to hit energy-importing economies since the 1970s.

Fast recharge, but off

The European Commission is on Tuesday publishing a plan to cut Russian gas exports to the EU by two-thirds within a year, as it tries to reduce the amount of money that will fuel Moscow’s war against Ukraine.

Frans Timmermans, the commissioner of the Green Deal, argues that increasing renewable energy and reducing demand through efficiency savings is the fastest way to achieve these goals.

EU countries will also have to import more liquefied natural gas, which is more expensive than piped supplies from Russia. Consumers who must face higher prices to lessen their dependence on Moscow and reduce global warming must be helped, he made clear in an interview.

“If people think it’s going to be expensive for them, they won’t accept our analysis,” he said. “We cannot do this without the support of our people.”

The Dutchman has first-hand experience of the problems of going green. The interview was delayed by 30 minutes because his electric Audi lost power on the way from Brussels to Strasbourg. He had to refuel in Luxembourg, ironically a tactic also popular with diesel drivers from France, Germany and Belgium, lured by the cheaper fuel there.

His team reports the lack of fast charging facilities on the motorway between Arlon and Strasbourg. The Audi e-tron, with a range of around 250km (although less in the cold), had a similar problem en route to Paris last week. “There is a good business opportunity in charging stations in northern France,” said one frustrated passenger.

Notable, Quotable

“One of the things we are looking at is the possibility of using more hydrocarbons [combustíveis fósseis] ours. We need to increase our self-reliance,” said Boris Johnson, Prime Minister of the United Kingdom.

The prime minister is preparing to unveil a new “energy supply strategy” in the UK following Russia’s invasion of Ukraine, which could involve more oil and gas production in the North Sea. The prime minister insisted he was not abandoning the government’s commitment to reducing carbon emissions, but said the UK needed greater self-sufficiency in its energy sources.

Express for Refugees

With Ukraine’s airspace closed and many refugees having to walk the last few kilometers to the border, Europe’s rail companies have become one of the main modes of transport for Ukrainians trying to reach a refuge abroad.

From free train travel to a medical train, rail operators that are members of the CER (European Community of Railways and Infrastructure Companies) – which includes Germany’s Deutsche Bahn and France’s Eurostar – are coming up with creative ways to show solidarity in the crisis of refugees.

“The Ukrainian population is currently exposed to immeasurable human suffering, with many forced to leave their homes and their country,” the CER said in a statement. The Ukrainian Railway (UZ) transported nearly 1 million people who have already been evacuated, with priority given to children, women and the elderly, the group said. As of yesterday, more than 1.7 million Ukrainians have left abroad, according to the UN refugee agency.

Evacuation trains can run from Kiev and other rail hubs such as Lviv, Uzhhorod and Chop to Poland, Hungary, Moldova, Romania, Slovakia and the Czech Republic, either on direct or connecting services, the CER added.

How are rail companies helping?

Poland’s PKP is organizing humanitarian trains for refugees directly from Ukraine to neighboring countries and bringing humanitarian aid to the country.

Austria’s ÖBB is cooperating with its Czech subsidiary Rail Cargo Logistics on a night train that serves as a land bridge between Prague and Kiev, with space for 600 pallets of groceries and 400 passenger beds.

The cooperation between Austria’s ÖBB, Czech Republic’s CD and Germany’s Deutsche Bahn is opening up additional travel options for more stations. Train travel within these countries can be booked free of charge by Ukrainians.

Rail companies are also providing assistance – from information helplines to accommodation, service and advice space and job opportunities. They are also organizing other forms of humanitarian aid, such as fundraising and collecting essential supplies.

Contributed by Andy Bounds, Javier Espinoza and Sam Flemin

Translated by Luiz Roberto M. Gonçalves

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