German Chancellor Olaf Scholz was furious that that bloc would force all members to ditch Russian oil and gas with consulting. He called these economists irresponsible that they would risk an embargo that would affect many economies.
US President Joe Biden promised Brussels an alternative supply of liquefied natural gas and oil with too many problems. His calls for the Middle East to step up got rejected, mentioned the Intercept.
Scholz Says No to EU Embargo
The German Chancellor has not been convinced that the suggestion to stop getting supplies from Russia, as sanctions against Moscow, will benefit the bloc, reported the Express UK.
When interviewed, he said these economists make these claims based on unpragmatic equations. It is a hugely divisive issue with bloc members, not all 27 of them are too sure that a total energy ban is an answer.
Scholz has argued that any haste decision will be detrimental to many economies, as Hungary is also not keen on it. There is pressure for all 27 members to agree to an EU embargo, noted News Lanes.
Many buyers in Europe have dropped Russian crude because of legal and cancellation by the media as a supporter of Russian aggression.
A German refinery, PCK SCHWEDT, which is 54 percent owned by Rosneft, gets the crude oil through the Druzhba pipeline. Another firm land-locked Leuna refinery located in East Germany that is owned operated mainly by TotalEnergies is also getting supplies via the same pipeline.
Most European governments depend on Russian energy firms, and the impact of the events has driven fears over the shutdown of supplies, many would not risk this.
Europe needs 40 percent of natural gas and 25 percent of oil from Russia but has sought less dependence after the war. Russia needs the earnings as well from the bloc, as profits from its oil and gas business give revenue for the country, cited Country Highlights.
One truth is that if Brussels gets all the bloc members to say yes to an EU embargo, it will be a huge loss for the Union just to take down Russian President Vladimir Putin, with Scholz being the exception to the rule.
The cost of the war, which includes energy and materials expended, will be a shot in the arm to the economy of Europe, which cannot risk such a move.
Could Europe Cope With Russian Oil Boycott?
Sanctions by the US allow buying oil and gas but have prohibited Russian energy. The Kremlin demanded those hostile states should pay in rubles for the energy deliveries.
The Group of Seven (G7) major economies are one in denying the demand to pay in Russian currency. Germany's energy minister Robert Habeck said it's a breach of contract.
He added that officials from France, Germany, Italy, Japan, the United States, the United Kingdom, and Canada gathered to coordinate last Friday, including representatives from the European Union reportedly present.
Paying in rubles will not be tolerated, and other companies should not agree to the demand by Moscow.
Putin told the Russian central bank to devise a means to let all-natural gas buyers get rubles from Russia. Habeck said if the energy were shut down, there would be ways to deal with it.
German Chancellor Olaf Scholz has no confidence in an EU embargo and is one of many voices telling Brussels they need to have a better plan for contingencies.
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