Europe faces pressure on the United States, Britain bans Russia’s oil | Associated Press

Brussels (AP) — Europe faces tough choices: choking oil and gas money is worth the recession Russia at war in Ukraine??

The 27 member European Union faces far more financial suffering and consequent sanctions from the war than the United States. Especially when it comes to oil and gas, which powers vehicles and maintains heat and lighting.

in the meantime US and UK ban Russian oil Increasing pressure on Europe to follow Continent dependence on Russia for energy Immediate embargoes will be much more difficult. Still, while record inflation is almost certain to worsen, officials say it’s the only way to stop spending billions of oil and gas revenues on President Vladimir Putin’s finances. There is also.

Europe gets about 40% of natural gas Twenty-five percent of the oil comes from Russia, but the United States has a small amount of oil and no natural gas. The EU boycott Higher price for pumps and utilitiesAnd finally, the threat of energy crisis and recession while the economy is still recovering from the coronavirus pandemic.

All prices from food to electricity Partly already painfully expensive Soaring European natural gas prices.. The government has subsidized people to compensate for the high utility bills, but gasoline has exceeded € 2.01 per liter. That’s $ 8.33 per gallon. This means that filling a compact car can cost 90 euros ($ 98).

These costs are already reducing personal consumption. Highest inflation ever 5.8%. The question is how much pain Europeans can feel to stop Putin’s attack on Ukraine.

Simon Tagliapietra, an energy policy expert at the Bruegel think tank in Brussels, said: “Therefore, we need a positive and clear political decision that we are willing to compromise the economy, and we are ready to accept the recession in order to put Putin where it hurts.”

US President Joe Biden US Ban on Russian Oil Imports“Many of our European allies and partners will not be able to join us.”

Efforts to reach a boycott can be complicated, as some EU member states are more dependent on Russia than others. Germany and Italy are heavily dependent on Russia’s natural gas. Poland gets 67% of oil from Russia, while Ireland gets only 5%.

David Hermes, Head of Global Energy Research Group at the University of Warwick Business School, said: “So it will put the European political system and European agreements and European projects … under so much stress.”

The European Commission, the EU’s executive body, announced its plans on Tuesday Pull the block away from two-thirds of Russia’s natural gas By the end of the year, it will include purchasing more liquefied natural gas to be shipped and building renewable energy faster.

“We are very dependent. That’s a sad reality,” said Dutch Prime Minister Mark Rutte.

The EU’s goal is “a big challenge to get there. I don’t know if it can be done, but we have to do our best to make it happen,” he said Wednesday.

With A world already facing an energy crisis When Oil prices soar to $ 120 per barrel Bruegel’s think tank Talia Pietra said European boycotts would send prices and inflation “on the month” compared to $ 76 at the end of last year. And for energy consuming countries around the world, not just in Europe.

“Price effectiveness is something that needs to be considered here, because it is The world economy falls into recession,” He said.

Still, the intensification of conflict, the flow of refugees, and the tragic image of suffering put the problem at the table very much.

Caroline Bain, Chief Commodity Economist at Capital Economics, said in an online briefing, “There is considerable pressure from both allies and the country. Unless it means prices are too high, the public will probably do this kind of move. I will support it. ” Tuesday.

Bain hoped that European countries would take a “more cautious approach” and “consider ways that could significantly reduce Russia’s dependence on energy,” rather than banning Russia’s energy altogether. ..

Oil is mainly supplied by tankers, but it is easier to replace it with other suppliers than natural gas. Natural gas comes primarily from fixed pipelines from Russia.

European refineries that turn crude oil into gasoline have been set up for higher density Russian oil and will face the challenge of switching to other types of oil. According to analysts at S & P Global Platts, Russia supplies 14% of the European diesel fuel used in trucks and many cars, and the turmoil means “significantly tightening the market.”

Europe has gone through most of the heating season, but will face the serious challenge of replenishing its natural gas reserves in time for next winter.

According to Brugel’s energy analysts, the continent could replace all but 10% to 15% of Russia’s gas, requiring a compulsory distribution that would hit industrial users first.

Despite the potential fallout, discussions on the ban are ongoing. Germany’s economic minister, Robert Habeck, defended the decision to exempt Russia’s energy from sanctions on Tuesday, saying U.S. officials “neither demand nor demand” participation in the oil embargo on Europe’s largest economy. ..

However, some German lawmakers support it.

Boycotting Russia’s energy is a “difficult decision, but a possible and therefore necessary decision,” and “damages the decisive lifeline of the Putin administration,” said the German parliamentary opposition Christian Democratic Party conservative. Norbert Lotgen, a member of the faction’s Foreign Relations Committee, said. ..

Dominique Tarchunski, a member of the European Parliament of the Polish Populist Law and Justice Party, said: “

Chan and Kirka reported from London.

Europe faces pressure on the United States, Britain bans Russia’s oil | Associated Press

Source link Europe faces pressure on the United States, Britain bans Russia’s oil | Associated Press

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