The EU is considering imposing sanctions on Russian oil, but they need to overcome resistance from some member states, particularly Hungary and Slovakia, which express concerns about the costs associated with transitioning to alternative oil supply sources, writes Bloomberg.
According to sources familiar with the situation, the European Union is also discussing imposing sanctions on companies in India and China that facilitate trade in Russian oil as part of an upcoming package of new restrictions.
US President Donald Trump stated over the weekend that he is ready to impose "serious" sanctions on Russian oil if European countries do the same. The sanctions will target energy trade, which is crucial for financing Vladimir Putin's war against Ukraine.
Trump's letter puts US President's ideological ally Viktor Orban in a particularly difficult position. Hungary has doubled its imports of Russian energy resources following Moscow's full-scale invasion of Ukraine and has taken advantage of a temporary exemption from EU rules regarding oil imports. Hungary has also bet on Chinese investments, especially in the automotive and battery industries, making Orban's support for new EU tariffs on goods from China highly unlikely.
Pressure from the US comes as Europe has postponed the phase-out of Russian gas until 2027 and granted countries like Hungary and Slovakia temporary exemptions from sanctions on Russian oil. Nevertheless, the share of Moscow's oil in EU imports has decreased from 27% before the war to about 3% last year after sanctions came into effect in 2022.
The US actions will mainly aim to toughen the stance on Russia, as requested by Ukraine and Europe, and to align the EU's position towards Beijing. Brussels and European capitals may not be interested in escalating tensions with China, given the bloc's dependence on the vast market of this Asian country, especially after tariffs were imposed on the American market. The EU also seeks to complete work on a trade agreement with India.
Earlier this year, the EU agreed to ban the import of petroleum products made from Russian oil. This will affect some companies in India and Turkey that import large volumes of Russian oil and export diesel and other fuels to EU countries.