5 steps EU can take to stop Ukraine war
There are five moves the European Union could make to stop the Ukraine conflict, from oil price caps to tackling trade sanctions
As tensions escalate in Ukraine, European Union leaders are under pressure to take decisive actions. According to insights from the digital newspapers Politico, five potential strategies the EU could implement to address the crisis are fixing the oil price cap, denting the Russian metals trade, turning off the gas taps, tackling the middlemen in trade and saying no to Russian nuclear energy.
In December 2022, the G-7 nations, along with the EU and Australia, introduced an unprecedented price cap of $60 per barrel on Russian oil. This measure was designed to pressure Moscow into maintaining oil supplies to stabilize the global market, while simultaneously reducing its profits from sales. Initially successful, the effectiveness of the plan diminished over time as Moscow discovered methods to bypass the imposed regulations. Presently, hardly any oil is sold below the set price cap.
Regarding the Russian metals trade, there is growing pressure from more assertive EU capitals to implement a ban on all imports of Russian aluminum. Currently, approximately 80% of this profitable metal trade with Russia remains untouched by sanctions. Although the proposal has received backing from Estonia, Latvia, Lithuania and Poland, the European Commission did not incorporate the idea into its recent sanctions proposal. However, the EU executive hinted that the measure might be taken into account in a forthcoming package.
In the realm of gas imports, Russia remained a significant contributor, making up roughly 15% of the EU’s gas imports last year. Despite this, the continent has ramped up its imports of liquefied natural gas from various sources such as the U.S., Norway, Libya, and Algeria. Notably, countries like Belgium and Spain have even boosted their gas purchases from Moscow in 2023.
Middleman refers to countries that facilitate trade with Russia despite EU sanctions. The focus is on countries such as Georgia and Armenia in the South Caucasus, as well as Kazakhstan in Central Asia. These nations share borders or have close proximity to Russia, maintaining significant trading ties with Moscow. To address this issue, Brussels has designated former EU ambassador to the U.S., David O’Sullivan, as a sanctions czar. His role involves traveling across the former Soviet Union to exert pressure on countries to ensure compliance with regulations.
Lastly, concerning the matter of Russian nuclear involvement, Moscow remains a significant player in the EU’s civilian atomic energy sector. Just on the EU’s doorstep, Budapest is actively expanding its Paks nuclear power station with the assistance of Rosatom. Prime Minister Viktor Orban has firmly stated his intent to oppose any sanctions targeting the nuclear industry.
Source: Newsroom
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