Posted on 04/05/2022 6:19:15 AM PDT by blam
Not to be outdone by tiny Lithuania (which claims to have officially weaned itself off Russian gas imports by building an LNG terminal), the European Commission has devised a controversial proposal to ban imports of Russian coal, along with a host of other measures comprising a new sanctions package to be introduced on Tuesday, according to reports from WSJ, Reuters and a host of other media outlets.
Along with banning imports of Russian coal, the package also calls for an import ban on rubber, chemicals and other products from Russia worth up to €9 billion a year.
If passed, the proposal would mark the first energy sanctions on Russia since the start of the conflict in Ukraine. Although it wouldn’t touch oil and gas, such a ban would break the so-called “energy taboo”, according to Bloomberg’s Javier Blas.
THE FIRST EU ENERGY SACTIONS ON RUSSIA:
Brussels is planning to propose a mandatory phaseout on **coal imports from Russia**. Details about how and when still negotiated. It doesn’t affect oil or gas, but if approved (big if), it breaks the energy taboo https://t.co/K7DeOC6LJI
— Javier Blas (@JavierBlas) April 5, 2022
While thermal coal isn’t nearly as critical as oil and gas, it’s still a “big deal,” Blas pointed out.
Although thermal coal isn’t nearly as critical for Europe as Russian oil and natural gas is, it’s still a big deal. The EU buys more than 45% of its coal from Russia, according to Eurostat data. And global coal markets are already extremely tight, with record prices | #coal pic.twitter.com/vpA4yjm0qa
— Javier Blas (@JavierBlas) April 5, 2022
Coal-fired power plants are still being used across the EU, though most member states expect to completely phase them out by 2030. Russia has the second-largest coal reserves in the world. In 2020, it mined 328 million metric tons, making it the sixth-largest producer globally. According to Eurostat data, nearly half of the bloc’s coal comes from Russia.
Source: Visual Capitalist
Despite the country’s heavy dependence on Russian energy, a German government source (according to Reuters) said the country would support a ban on Russian coal imports (so long as oil and gas are left alone).
Here are some other details from the proposal (as reported by Reuters):
◾Russian vessels and trucks will also be prevented from accessing the EU, further crippling trade with Russia, the source said, adding that exceptions will be made for energy products, food and medicines.
◾The EU will also ban all transactions with VTB (VTBR.MM) and another three Russian banks which had already been excluded from the SWIFT messaging system, the source said.
◾Dozens more individuals, including oligarchs and politicians, will be added to the EU sanction list, the source said.
Over the last 24 hours, several European leaders – most notably French President Emmanuel Macron – have stepped up calls for a ban on Russian energy exports (specifically coal and gas), per the FT.
“There are very clear indications of war crimes,” Macron said in an interview on France Inter radio on Monday. “What happened in Bucha demands a new round of sanctions and very clear measures, so we will co-ordinate with our European partners, especially with Germany.”
“I think that on oil and coal we must be able to move forward. We should certainly advance on sanctions…We can’t accept this.”
Finance Minister Bruno Le Maire reiterated that France would support the import bans, and told reporters before a meeting of EU finance ministers Tuesday that “we will see what the position of the other members will be” (EU sanctions must be decided unanimously by all 27 member states).
Of course, Germany and other states dependent on Russian energy have warned that the bloc shouldn’t jump to conclusions without carefully weighing the consequences.
Lots of pressure, passionate argument behind EU scenes today. Focus: fresh sanctions against Russia, specifically energy, as THAT is what will hurt Moscow. EU under huge pressure to take meaningful action as their voters digest the horrors of civilian suffering in Ukraine BUT /1
— Katya Adler (@BBCkatyaadler) April 5, 2022
EG Germany fears public support will drop if energy sanctions lead, as it predicts, to covid-like economic recession, meaning factory closures, job losses, even blackouts. Other EU governments eg Latvia, Lithuania impatiently planning and introducing own energy imports because /2
— Katya Adler (@BBCkatyaadler) April 5, 2022
Yesterday, European Commission VP Valdis Dombrovskis said that oil and coal sanctions “are definitely an option”, while Commissioner for Economy Paolo Gentiloni said these sanctions definitely weren’t “off the table”.
Other potential escalations could involve blocking new machinery exports to Russia, targeting Russian oligarchs and some family members and slashing the access of Russian road and shipping goods carriers into the bloc.
Any proposal would still need backing from the bloc’s 27 member states.
More Kabuki theater.
Sanctioning themselves back to the 19th century.
The US and Australia are Germany’s next largest suppliers after Russia.
What a coinkydink.
When have sanctions worked? Please, one example, none are coming to my mind.
The EU has been on this suicide course for a decade. Trump warned them 6 years ago, but I guess actual dire warnings are ignored, and fake ones like climate change are focused on like a laser beam.
What do you think the U.N. has been doing for decades? Focusing on how to use climate change to extract money from U.S. taxpayers to redistribute to other nations. Honestly, are they comfortable having a war criminal and his country in such a prominent role at the U.N.? What a worthless harmful joke the U.N. is.
That’s an awful lot of virtue signaling just to support a kleptocratic regime that countenances child sex trafficking...
Less energy, less food production. The lunatic greens won’t starve but Africans will.
Shut down the German steel mills. THAT will teach Russia a lesson.
That's exactly what the Paris thing that Trump quit was about. Redistributing US taxpayers money to the world.
Executive summary: Globohomo doesn’t mind if the peasant freeze in the dark.
When sanctions on Iran were imposed 80% of the population were pro-American, now 99,9% hate American with a passion. Meanwhile, mullahs are okay and doing better than ever.
“by building an LNG terminal”
so, Lithuania built an LNG terminal overnight and also managed to buy “surplus” LNG on the open market?
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