TURNING OFF THE TAPS

EU to Ban All Russian Energy Imports if New Sanctions Package Is Agreed to

New agreement being negotiated Wednesday will seek to cut almost all Russian energy imports by the end of year.

European Union President Ursula von der Leyen vowed Wednesday to phase out all Russian oil imports to the block in an “orderly fashion,” with a plan for almost all oil and oil-related products to be banned by the end of the year. The 27 EU countries are putting together a sixth round of sanctions against Russia in retaliation for its invasion of Ukraine, which envisages energy imports ceasing this year for most countries, although Hungary and Slovakia will get until the end of 2023 to comply with the new ban. The new sanctions, if agreed to, will also see greater pressure on the Russian financial system, with Sberbank, Russia’s largest, kicked off the global SWIFT interbank system along with Credit Bank of Moscow and Russian Agricultural Bank, the Financial Times reported, citing draft proposals. The measures will need the support of all of the EU’s 27 states. There are fears oil sanctions could actually benefit Russia’s bottom line by driving up oil prices, which jumped 2.5 percent as the news broke. Russia has claimed record earnings on its carbon exports this year as the conflict drove up the price: In April, Russia got $9.6 billion more from energy sales than originally estimated, because of the elevated prices.