On the Most Cunning One Will Always Find More Cunning

by Olha Povaliaieva
Wednesday, June 2, 2022
On the Most Cunning One Will Always Find More Cunning

The European Union may impose an oil duty on those countries that refused to impose an embargo on Russian energy resources

The Financial Times, citing a source in the European Commission, reports on the likely introduction of a duty on Russian pipeline oil for those countries that do not announce a clear deadline for the aggressor country's refusal of the energy carrier. We are talking about those countries that have abandoned the oil embargo. In particular, Hungary, which continues to import Russian oil through the Druzhba pipeline. It is known that oil transportation through this pipeline is 20% cheaper than through other oil systems. This is one of the reasons why Orban may be dragging his feet on joining the European embargo.

It is noteworthy that adopting a decision on the introduction of duties does not require all 27 votes but only a qualified majority. Thus, Hungary will not be able to block the adoption of this decision.

"The best option is a ban on imports. But customs duty is an alternative that we can consider," a The Financial Times source at the European Commission.

According to the source, the duty on the use of the pipeline will make the oil of the aggressor country even more uncompetitive. In this case, Russia will be forced to lower prices, and the countries that have abandoned the embargo will have to pay more.

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