No further EU sanctions against Russia amid growing disunity on oil and gas supplies

Targeting Russian oil, as the US and Britain have done, is a tough and divisive choice for the 27-nation EU, which relies on Russia for 40% of its gas

Foreign Affairs Minister Simon Coveney, said: 'Looking at the extent of the destruction in Ukraine right now, it's very hard to make the case that we shouldn't be moving in on the energy sector, particularly oil and coal.' File Picture Julien Behal

EU ministers will not agree on a new sanctions package against Russia today amid growing disunity on sanctioning the country's oil and gas supplies.

Europe is giving Russia about €260 million a day for oil and a similar amount on gas, Simon Coveney has said.

The EU and its Western allies have already imposed a panoply of sanctions against Russia over its invasion of Ukraine, including freezing its central bank's assets.

The humanitarian crisis in the besieged port city of Mariupol is increasing pressure on Europe to do more.

But whether to target Russian oil, as the US and Britain have done, is a tough and divisive choice for the 27-nation EU, which relies on Russia for 40% of its gas.

Speaking at lunchtime, Mr Coveney said he did not think a new sanctions package will be agreed today but said Ireland is to the fore in seeking additional measures.

“I don't think we will have a new sanctions package agreed today, but certainly we're lining up the conversation for the European Council meeting later on this week. And I think there is an appetite for increased sanctions,” he said.

“Certainly Ireland is to the fore in this debate. There are various options, some of those options impact significantly on EU member states. And so we have to be sure that we can keep unity in this discussion,” he said.

“But when you think about it, the EU spends about €260m a day on purchasing oil alone from Russia, and something similar on gas every single day,” he said.

Mr Coveney said that there is "a clear agreement" that the EU is committed to moving away from a dependency on Russia for energy. 

"But the timeframe that that can be delivered on in a practical sense is what's being discussed now,” he said.

“But that doesn't mean that we won't move ahead on some of those choices this week. But all energy imports from Russia are unlikely to be agreed in the immediate term,” he added.

Mr Coveney said he is asking the question as to whether the EU in giving Russia so much money every day is effectively funding its war effort.

“I certainly accept that money that's coming from the EU in the energy sector is in funding Russia right now,” he said.

“Is it credible for the EU to on the one hand, the planning for millions, and it is literally millions now of Ukrainian refugees fleeing violence and brutality and war, because of Russia's war in Ukraine, and at the same time be spending hundreds of millions of euros a day on importing energy products from Russia,” he said.

“I'm not the one that needs to be convinced of that. This is about trying to create unity across 27 countries in the EU, some of whom are highly reliant on Russian energy sources. And we're working on that we've had a very active debate on that,” he said.

This is because there are some countries that are 80% and 90% reliant in terms of their oil and gas sources from Russia.

“That of course creates the difficulty. The great strength of the EU and over the last month or so in response to Russia's aggression in Ukraine has been unity. And so while I think we will continue to add to sanctions from a financial perspective, from a banking perspective, increase the number of Russian business people that are banned from travelling within the EU will have their assets freezed here, I think we will look at energy products as well,” Mr Coveney said.

He said a final decision is unlikely until the EU Summit of leaders takes place in Brussels later this week.

Mr Coveney said Ireland is backing a plan to allow for a 5,000 strong EU rapid response force be established, under the Strategic Compass strategy.

“Not only are we backing this plan, we've shaped this plan and we've been debating the strategic compass for the last two and a half years. And we're hoping to conclude a document this week. So there's a lot in the strategic compass,” he said.

He said it doesn't require a new referendum in Ireland. But what it does do is it allows us to work in a way that is focused more on on interoperability with other EU countries so that we can provide collective interventions in parts of the world where the EU needs to be a peacemaker.

Earlier, it was revealed that the Government is pushing for more sanctions on Russia’s oil and coal supplies at meetings in Brussels on Monday, but there is opposition from the Germans and the Dutch.

Diplomats told Reuters that Baltic countries including Lithuania are pushing for an embargo as the next logical step, while Germany, which very much depends on Russian gas, is warning against acting too quickly because of already high energy prices in Europe.

"It's unavoidable we start talking about the energy sector, and we can definitely talk about oil because it is the biggest revenue to Russia's budget," Lithuanian foreign minister Gabrielius Landsbergis said.

German foreign minister Annalena Baerbock said "the pictures that reach us from Ukraine are heart-breaking".

"This makes it even clearer that the EU, that the world that believes in a rules-based order, has to isolate this regime," she said. However, she declined to answer a question on what could trigger sanctions on Russia's energy sector.

Dutch prime minister Mark Rutte told a separate meeting that the EU was still dependent on Russian oil and gas and could not cut itself off by Tuesday, making clear there were limits on what the bloc could do at this stage.

Diplomats have said a Russian chemical weapons attack in Ukraine, or a heavy bombardment of the capital Kyiv, could be a trigger for an energy embargo.

Moscow itself has warned that EU sanctions on Russian oil could prompt it to close a gas pipeline to Europe.

US president Joe Biden arrives in Brussels on Thursday for talks with Nato's 30 allies, the EU, and in a Group of Seven (G7) format including Japan, designed to harden the West's response to Moscow.

The Kremlin has so far not been moved to change course in Ukraine by series of EU sanctions, including on 685 Russians and Belarusians and on Russian finance and trade.

Fifth round of sanctions

A fifth round of sanctions will include adding more names to the EU blacklists, with France saying if the situation worsens even further in Ukraine there should be no "taboos" in terms of sanctions, officials said.

Meanwhile, Agriculture Minister Charlie McConalogue has said he will press the need to ensure proper food supply chains throughout Europe in light of escalating sanctions on Russia.

He will “note” the European Commission's response to date on the impact the Russian invasion of Ukraine is having on the agri-food sector.

He will also be calling on the commission to urgently examine and approve measures which member states require to help alleviate the situation for the fishing industry.

He said: “I will emphasise again the need to maintain functioning supply chains, and to ensure that our responses do not have any negative impact on the functioning of the single market."

The council will also receive a summary update from the commission on member states' CAP Strategic Plans, with Mr McConalogue urging the commission to approve the plans in a timely manner, in order to give Irish farm families the clear signals they need in order to be ready to implement the new Common Agricultural Policy from 2023.