EU imposed sanctions on Russian oil

The European Union included a ban on Russian oil imports in the 6th package of sanctions approved last night. The ban includes maritime supplies or, according to European Council President Charles Michel, will suspend two-thirds of Russia's oil supplies to Europe.

At the same time, an exception was made for pipeline supplies. Hungarian Prime Minister Viktor Orbán also said that his country had been released from the oil embargo against Russia.

"This decision will actually reduce about 90% of Russia's oil imports to the EU by the end of the year," said European Commission President Ursula von der Leyen.

The ban on maritime oil supplies from Russia to Europe comes into force 6 months after its adoption, and in 8 months for oil products. Ban on insurance of oil tankers resold to third countries - in 6 months.

Supplies through the Druzhba pipeline will continue until landlocked alternative supplies are made to Hungary, the Czech Republic, and Slovakia. At the same time, Germany and Poland have confirmed that they will stop importing Russian oil by Druzhba by the end of 2022, regardless of the EU decisions.

Oil prices rose on this Tuesday morning after a new package of sanctions was announced. Thus, Brent oil traded above 123.00 $/bbl (+ 1.4%), and the American WTI oil was priced at 118.50 $/bbl (+ 3%).

In addition to oil, the 6th package of sanctions included the disconnection from SWIFT of Russia's largest bank, Sberbank, a ban on 3 other Russian state broadcasters in the EU, and personal sanctions against several individuals.