BRUSSELS: French Finance Minister Bruno Le Maire said Tuesday that there is a “total determination” from all 27 European Union countries for sanctions against Russia that could target oil and coal over evidence its troops deliberately killed Ukrainian civilians.
Europe’s dependence on Russian oil, gas and coal means finding unanimity on energy measures is a tall order, but the reports of the killings outside Kyiv have increased pressure for tougher EU sanctions.
So far, Europe has not been willing to target Russian energy over fears that it would plunge the European economy into recession. In some ways, it would be easier for Europe to go without Russian oil than gas because most supplies come by tanker and could be purchased from other suppliers. But talk of a possible boycott of Russian oil has helped push up global oil prices this week.
Asked whether there was a political willingness to impose sanctions on Russian oil and coal — a move suggested this week by French President Emmanuel Macron — Le Maire said: “We will see what the position of the other member states will be, but I think there is a possibility to have unity on the 27 member states on these new sanctions.”
He did not mention natural gas, and a consensus on targeting the fuel that is used to generate electricity and heat homes would be even more difficult to secure. The EU gets about 40 percent of its natural gas from Russia and many EU countries, including Germany — the bloc’s largest economy — are opposed to cutting off gas imports.
France holds the presidency of the EU Council, and Le Maire spoke ahead of a meeting of EU finance ministers in Luxembourg, where they will discuss possible new measures to punish the Kremlin.
While the EU has stayed away from sanctioning Russian energy so far, individual countries have announced efforts to draw down their reliance: Poland said it plans to block imports of coal and oil from Russia, while Lithuania said it’s no longer using Russian natural gas.
The European Union gets about 25 percent of its oil from Russia, while the EU imported 53 percent of hard coal from the country in 2020, which accounted for 30 percent of the EU’s hard coal consumption.
While coal and oil may be up for discussion, Teresa Ribera, Spain’s Minister for Ecological Transition, said Tuesday that it is “very hard” for the EU to sanction Russian natural gas because some of the bloc’s countries are dependent on it for their energy supply and that the EU’s strength lies in its unity.
“It is very difficult to explain to European public opinion and Ukrainian society that we are still importing Russian energy that finances this war,” she said, adding that energy imports create “obvious moral tension.”
European importers pay about $850 million per day for Russian oil and natural gas.
Russian natural gas mostly comes by fixed pipeline and would be harder to replace suddenly with shipments of expensive and scarce liquefied natural gas. While oil might be easier to cut off than gas, ditching it would not be without consequences.
For one, the resulting price increases for other oil could increase the incentive for India and China, who aren’t taking part in Western sanctions, to buy cheaper Russian crude. Russia is also a major supplier of diesel fuel; if that supply were lost, operating diesel-powered trucks and farm equipment could quickly become more expensive, fueling already high inflation in Europe.
Oil prices rose as buyers seeking to avoid Russian oil bid for limited supply from other producers like Saudi Arabia, commodities analysts at German bank Commerzbank said.
International benchmark Brent rose 3 percent on Monday and traded Tuesday above $108 per barrel, up another 1 percent. US crude rose 1.1 percent to $104.37 on Tuesday. Crude prices had fallen after US President Joe Biden last week announced the release of 180 million barrels of oil over six months from strategic reserves. Higher oil prices mean more expensive gasoline for US drivers.
The next package of EU sanctions will be prepared by the EU’s executive arm, the European Commission, which will then present it to EU countries for approval.
France pushing for energy sanctions against Russia
https://arab.news/29mny
France pushing for energy sanctions against Russia
- Poland said it plans to block imports of coal and oil from Russia
- Meanwhile, Lithuania said it’s no longer using Russian natural gas
India accelerates free trade agreements against backdrop of US tariffs
- India signed a CEPA with Oman on Thursday and a CETA with the UK in July
- Delhi is also in advanced talks for trade pacts with the EU, New Zealand, Chile
NEW DELHI: India has accelerated discussions to finalize free trade agreements with several nations, as New Delhi seeks to offset the impact of steep US import tariffs and widen export destinations amid uncertainties in global trade.
India signed a Comprehensive Economic Partnership Agreement with Oman on Thursday, which allows India to export most of its goods without paying tariffs, covering 98 percent of the total value of India’s exports to the Gulf nation.
The deal comes less than five months after a multibillion-dollar trade agreement with the UK, which cut tariffs on goods from cars to alcohol, and as Indian trade negotiators are in advanced talks with New Zealand, the EU and Chile for similar partnerships.
They are part of India’s “ongoing efforts to expand its trade network and liberalize its trade,” said Anupam Manur, professor of economics at the Takshashila Institution.
“The renewed efforts to sign bilateral FTAs are partly an after-effect of New Delhi realizing the importance of diversifying trade partners, especially after India’s biggest export market, the US, levied tariff rates of up to 50 percent on India.”
Indian exporters have been hit hard by the hefty tariffs that went into effect in August.
Months of negotiations with Washington have not clarified when a trade deal to bring down the tariffs would be signed, while the levies have weighed on sectors such as textiles, auto components, metals and labor-intensive manufacturing.
The FTAs with other nations will “help partially in mitigating the effects of US tariffs,” Manur said.
In particular, Oman can “act as a gateway to other Gulf countries and even parts of Eastern Europe, Central Asia, and Africa,” and the free trade deal will most likely benefit “labor-intensive sectors in India,” he added.
The chances of concluding a deal with Washington “will prove to be difficult,” said Arun Kumar, a retired economics professor at the Jawaharlal Nehru University.
“With the US, the chances of coming to (an agreement) are a bit difficult, because they want to get our agriculture market open, which we cannot do. They want us to reduce trade with Russia. That’s also difficult for India to do,” he told Arab News.
US President Donald Trump has threatened sanctions over India’s historic ties with Moscow and its imports of Russian oil, which Washington says help fund Moscow’s ongoing war with Ukraine.
“President Trump is constantly creating new problems, like with H-1B visa and so on now. So some difficulty or the other is expected. That’s why India is trying to build relationships with other nations,” Kumar said, referring to increased vetting and delays under the Trump administration for foreign workers, who include a large number of Indian nationals.
“Substituting for the US market is going to be tough. So certainly, I think India should do what it can do in terms of promoting trade with other countries.”
India has free trade agreements with more than 10 countries, including comprehensive economic partnership agreements with South Korea, Japan, and the UAE.
It is in talks with the EU to conclude an FTA, amid new negotiations launched this year for trade agreements, including with New Zealand and Chile.
India’s approach to trade partnerships has been “totally transformed,” Commerce and Industry Minister Piyush Goyal said in a press briefing following the signing of the CEPA with Oman, which Indian officials aim to enter into force in three months.
“Now we don’t do FTAs with other developing nations; our focus is on the developed world, with whom we don’t compete,” he said. “We complement and therefore open up huge opportunities for our industry, for our manufactured goods, for our services.”
