Latest news with #REPowerEU
Euronews
a day ago
- Business
- Euronews
Why did Fico veto the new EU sanctions on Russia? Money is key
A new veto has landed in Brussels. Robert Fico, Slovakia's prime minister, confirmed on Thursday that he would continue to vote down the next package of sanctions that the European Union wants to impose on Russia in response to the full-scale invasion of Ukraine. With sanctions subject to unanimity rules, Fico's decision makes it impossible to approve the proposal, which is considered ready to go after diplomats spent the last day polishing the technical details in anticipation of a formal endorsement. Interestingly, Fico's opposition has nothing to do with the sanctions themselves. It relates to an entirely different matter: the so-called REPowerEU roadmap. The roadmap envisions a phase-out of all imports of Russian fossil fuels, including pipeline gas and liquefied natural gas (LNG), by the end of 2027. The European Commission unveiled the roadmap in May and presented the draft legislation in June, based on gradual bans on short-term and long-term gas contracts. "Russia has repeatedly attempted to blackmail us by weaponising its energy supplies," said Ursula von der Leyen, the Commission president. "We have taken clear steps to turn off the tap and end the era of Russian fossil fuels in Europe for good." As a landlocked country with entrenched ties to Russian fuels, Slovakia immediately – and vociferously – protested the phase-out, warning it would raise prices and endanger competitiveness. Hungary, which is in a similar situation, joined the resistance. A hot point of contention has been the Commission's strategy to frame the proposal as trade and energy policy, meaning it will only need a qualified majority to pass through. Until now, the executive had chosen sanctions, a foreign policy tool, as the go-to option to remove imports of Russian fuels, such as coal and oil. Hungary and Slovakia were exempted from the permanent ban on Russian crude oil. As sanctions on gas remain elusive due to long-standing disagreements among capitals, the Commission took matters into its own hands and envisioned a creative workaround to ensure the prohibition on Russian gas eventually sees the light of day. The trick infuriated Slovakia, which resorted to vetoing the 18th package of sanctions as a last-ditch effort to extract the concessions that it would otherwise not get. The colour of money Fico confirmed his veto after holding a bilateral meeting with von der Leyen on the sidelines of an EU summit in Brussels. In the days leading up to the summit, officials in the Commission had sounded optimistic that a compromise of sorts would be reached and the 18th package of sanctions would sail away before the end of the month. But then, the Slovak put his foot down. In a video message posted on his Facebook account in the middle of the summit, Fico aired an extensive list of grievances and reservations regarding the phase-out, indicating he was open to a deal with von der Leyen but at a higher-than-expected price. "It's unfortunate that we are heading down this road, as this is clearly an ideological proposal," he said. "This will harm us, unless an agreement is reached with the European Commission that would compensate us for all the damage this proposal might cause." The leader name-checked five issues that he wants to address and, ideally, resolve: "Therefore, this issue must be resolved first," Fico said at the end of the video. "Let's define the solution, and only then can we discuss further sanctions packages. If our proposal to postpone the vote is not accommodated, the Slovak ambassador will receive a clear instruction to veto the adoption of the 18th sanctions package." Fico noted he would engage in "constructive negotiations", with a "special mission" led by the Commission scheduled to travel to Slovakia next week. It is far from clear how von der Leyen's team would manage to accommodate his needs, which appear to be worth billions in euros. The bloc's multi-annual budget is strained and has limited space to cope with unforeseen circumstances or, in this case, demands. The proposed phase-out does not feature a dedicated envelope of EU funds. Von der Leyen did not address the thorny subject in her press conference at the end of the summit, and the Commission did not immediately reply to a request for comment. Officials had previously insisted the phase-out would not produce a steep rise in consumer prices because the bloc's transition away from Russian fuels is already well underway, with greater diversification from Norway, the US, Algeria, Qatar, Azerbaijan and the UK, as well as faster deployment of homegrown green energy. "We can, indeed, make sure that this transition will happen in a way that it does not lead to an increase in prices and certainly not to a situation of supply issues for these countries," Dan Jørgensen, the European Commissioner for Energy, said in June. Jørgensen also stressed that the bans foreseen under the phase-out would be solid enough to declare force majeure – that is, events or circumstances that go beyond the control of the signatories – and protect clients against eye-popping damages. "We've deliberately formulated this legislation and used the legal basis which makes it a prohibition and thereby a force majeure situation for the companies in question," he said. "That means they are not legally liable. It's not them that's breaking up a contract." The reasoning has not entirely convinced experts, who argue traditional foreign-policy sanctions are the most bulletproof method to defy lawsuits in court.
Budapest Times
2 days ago
- Business
- Budapest Times
Bóka calls for ‘fundamental change' in EU's Ukraine strategy
After an EU affairs ministers' meeting in Luxembourg on Tuesday, János Bóka, European Union affairs minister, has called for a 'fundamental change' in the EU's strategy when it comes to Ukraine. Bóka told a press conference that Hungary had proposed that the EU summit should 'mention in a short text that an immediate ceasefire and peace talks are needed in the war.' The proposal received no support from other member states, so 'I see no chance of a consensus on the EU Council's declaration regarding Ukraine on Thursday.' Prime Minister Viktor Orbán will take part in the summit after the results of Hungary's recently concluded Vote 2025 referendum have been revealed, and that will determine the government's stance on the matter, he added. Regarding the crisis in the Middle East, Bóka said Hungary had a vested interest in easing tensions, as escalation would bring the threat of terrorism, stronger migration pressure and growing energy prices to Europe. 'We fully back the peace initiative of [US] President Trump,' he added. Meanwhile, Bóka said the EU should focus on developing the member states' defence capabilities, 'we can't allow outsourcing those capacities to protect a third country.' Regarding defence expenditures, Bóka said that member states' exemption clauses, which allowed them a greater room for financial manoeuvres, should be expanded and prolonged indefinitely. Defence spending funded from the EU budget should be deductible as the member state's contribution, he added. On the matter of competitiveness, Bóka said the Budapest declaration had determined extremely high energy prices as one of the most important impediments to European competitiveness. 'We expected the EC to propose measures that would decrease energy prices … What we got was REPowerEU, which means growing prices and supply security problems,' he said. Hungary and Slovakia were acting in unison on calling for REPowerEU to be withdrawn, he said. Regarding EU enlargement, Bóka said 'we must send positive feedback to the countries of the Western Balkans. Hungary wants a speedy accession procedure, because the future of these countries is in the European Union,' he said.
Russia Today
18-06-2025
- Business
- Russia Today
Ditching Russian gas could cost EU state €16 billion
Slovakia could face €16 billion (over $18 billion) in penalties for cutting short a long-term gas deal with Russia's Gazprom under the EU's proposed phaseout plan, the country's state-owned gas importer SPP has warned, according to Reuters. Under the so-called REPowerEU plan, Brussels aims to eliminate the EU's reliance on Russian fossil fuels by 2028. The controversial legislation, supported by Commission President Ursula von der Leyen, would ban new gas contracts with Russia from 2026 and long-term ones by the end of 2027. The Commission has said it is considering legal avenues to enable European companies to claim force majeure, allowing them to terminate Russian gas contracts without penalties. SPP, which has a supply agreement with Gazprom until 2034, said on Tuesday that even if it invokes force majeure, the Russian energy giant may still seek compensation if an EU-wide import ban comes into force. Slovakia has repeatedly stressed the risks of cutting off Russian supplies, warning it would drive up prices across Europe and undermine energy security. Along with Hungary, Austria and reportedly Italy, Bratislava has opposed sanctions on Russian gas, which currently require unanimous backing from all EU member states. Slovak Prime Minister Robert Fico slammed the new phaseout plan as 'economic suicide.' Unlike sanctions, however, this plan is expected to be introduced as trade legislation, requiring the support of just 15 out of 27 EU members to pass, Reuters noted. Slovakia's energy setup leaves it particularly vulnerable. The landlocked country depends on Russia for about 85% of the gas it uses. In February, Slovakia began receiving Russian supplies via the TurkStream pipeline after Kiev halted gas transit through Ukraine, avoiding a domestic energy crisis. The country had already experienced a significant reduction in Russian gas imports due to Ukraine-related sanctions on Moscow and the 2022 sabotage of the Nord Stream pipeline. The EC's proposal will now go through the EU's co-decision legislative process, requiring approval from both the European Parliament and the Council.
Yahoo
18-06-2025
- Business
- Yahoo
EU plans to stop Russian gas and oil imports by 2027
The European Commission has proposed a gradual phase-out of Russian gas and oil imports into the EU by the end of 2027. The legislative proposal follows last month's REPowerEU road map, paving the way to ensure the EU's full energy independence from Russia. This decision is part of the EU strategy to eliminate vulnerabilities associated with dependence on Russian fossil fuels, thereby increasing its competitiveness. European Commission president Ursulavon der Leyen said: "Russia has repeatedly attempted to blackmail us by weaponising its energy supplies. We have taken clear steps to turn off the tap and end the era of Russian fossil fuels in Europe for good.' The proposal suggests that eliminating Russian gas imports will not significantly impact the economy or jeopardise the security of supply due to alternative global suppliers, a robust interconnected gas market within the union, and sufficient EU import infrastructure. The phase-out will substantially contribute to the objectives of the Competitiveness Compass, the Clean Industrial Deal and the Affordable Energy Action Plan. These initiatives emphasise the economic benefits of a cleaner, independent energy system and support Europe's decarbonisation goals. The proposed regulation outlines a stepwise discontinuation of pipeline gas and liquefied natural gas (LNG) originating from or indirectly exported by Russia. It also includes measures to ensure a complete cessation of Russian oil imports by the end of 2027. Under the proposed ban, new contracts for Russian gas imports will be prohibited, starting 1 January 2026. Existing short-term contracts must end by 17 June 2026, with certain exceptions for land-locked countries reliant on pipeline gas linked to long-term contracts, which are permitted until the end of 2027. All imports under long-term contracts are set to cease by the end of 2027. Additionally, long-term contracts for LNG terminal services involving Russian customers or entities will be banned, freeing up terminal capacity for alternative suppliers and bolstering the resilience of energy markets. "EU plans to stop Russian gas and oil imports by 2027" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Egypt Independent
18-06-2025
- Business
- Egypt Independent
Europe takes a big step toward banning Russian oil and gas as Ukraine war drags on
London CNN — The European Union is moving closer to banning all imports of Russian oil and natural gas more than three years after Moscow launched its unprovoked, full-scale invasion of Ukraine. The European Commission, the bloc's executive arm, put forward a legislative proposal Tuesday to gradually ban purchases of Russian natural gas – whether supplied via pipeline or as liquefied natural gas (LNG) on tankers. Under the plan, no new import contracts will be allowed from next year, while imports under existing short-term contracts for most EU member states will have to stop in a year's time and purchases under long-term contracts will be outlawed by the end of 2027. 'Russia has repeatedly attempted to blackmail us by weaponizing its energy supplies,' European Commission President Ursula von der Leyen said in a statement. 'We have taken clear steps to turn off the tap and end the era of Russian fossil fuels in Europe for good.' The proposal also includes a ban on Russian-owned or controlled companies signing up to long-term contracts for the EU's LNG terminal services, ensuring that 'terminal capacity can be redirected to alternative suppliers.' As for oil imports, the commission proposed requiring the member states still importing Moscow's oil to prepare plans to phase out these supplies, aiming at a complete stop by the end of 2027. For example, Hungary and Slovakia were still importing Russian crude oil via pipeline last year, according to an analysis by the Centre for Research on Energy and Clean Air, a research organization. Tuesday's proposal puts meat on the bones of the EU's 'REPowerEU' plan, introduced back in May 2022 to break the bloc's dependence on Russian energy. Hungary and Slovakia, two EU countries with more Russia-friendly governments, have previously threatened to block new rounds of sanctions against Russia. While they have ultimately voted in favor, the European Commission has taken steps to ensure they cannot stand in the way of its latest plan by using trade and energy legislation as the basis for Tuesday's proposal. That way, the new restrictions will become law if they are approved by a 'qualified majority,' meaning that more than half of EU member states representing at least 65 percent of the bloc's population will need to vote in favor. If the plan had been proposed under the EU sanctions rules, it would have required a unanimous vote from all member states. New sanctions The EU drastically slashed its imports of Russian energy after Moscow invaded Ukraine in early 2022. Russia's share of the bloc's total imports of natural gas fell to 19 percent last year, from 45 percent in 2021, according to official EU data. Meanwhile, Moscow accounted for just 3 percent of the EU's total oil imports in 2024, down from 27 percent at the start of 2022. Last week, the EU unveiled a new package of sanctions against Russia – its 18th since Moscow's invasion – designed to further reduce the Kremlin's ability to make money from its oil and gas production. Von der Leyen said the sanctions were necessary 'because strength is the only language that Russia will understand.' The proposed sanctions include lowering the price cap on Russian oil exports from $60 to $45 per barrel and introducing a full transaction ban on Russian banks and other financial institutions in third countries that help Russia circumvent existing Western sanctions. The new package will need to be approved by all of the EU's 27 member states. That could be complicated, given concerns raised previously by some EU countries, such as Hungary and Slovakia, about further sanctions on Russia.
