EU’s von der Leyen: Ban on Russian oil exempts oil that comes through pipelines

“I welcome the EUCO agreement tonight on oil sanctions against Russia. This will effectively cut around 90% of oil imports from Russia to the EU by the end of the year,” tweeted European Commission President Ursula von der Leyen after sanctions on Russia were unveiled.

Also read: EU diplomat: EU agrees to ban 90% of Russian oil imports by end of 2022

Key quotes

Ban on Russian oil exempts oil that comes through pipelines.

This allows dependent states, which is Hungary almost exclusively, to continue importing.

Shipped (sea-borne oil imports) Russian oil, accounting for 2/3 of EU imports, will be banned.

Germany and Poland will stop oil imports via the Druzhba pipeline by the end of the year.

Market reaction

After the news, WTI reverses the recent uptick to the highest levels since early March by declining to $115.90. Even so, the black gold remains 0.18% up intraday during the early hours of Tuesday’s Asian session.