EU Bans Russian Diesel and Oil
Facts
- In a move aiming to further pressure the Kremlin's fossil fuel earnings and reduce Europe's dependence on Russian energy — which previously accounted for 10% of Europe's diesel — the EU on Sunday imposed a ban on Russian diesel fuel and other refined oil products.
- This follows a Group of Seven (G7) countries' agreement to cap diesel, jet fuel, and petrol at $100 per barrel. This will allow Russia to sell to China and India to avoid sudden worldwide price jumps while also reducing Moscow's profits to fund its war.
- Diesel prices have risen significantly in recent months due to increased demand for diesel and a shortage of refining capacity, which has contributed to worldwide inflation. Diesel is key to the global economy as it is used for farm transport, agricultural equipment, and factory equipment.
- The new sanctions have created uncertainty about fuel prices as the EU seeks to replace Russian diesel with that from the US, the Middle East, and India. However, due to its geographic distance, distribution is stressing available tankers.
- US Treasury Sec. Janet Yellen said Friday that the new sanctions would help the world weaken Russia's economy and undermine its military, adding that "Combined with our historic sanctions, we are forcing Putin to choose between funding his brutal war or propping up his struggling economy."
- Aimed at preventing market turmoil, the import ban is being extended by 55 days for diesel loaded on tankers before Sunday, with EU officials saying it should be enough time for importers to adjust their approach since the ban was announced in June.
Sources: VOA, Al Jazeera, ABC News, Associated Press, NPR Online News, and Newsofmax.
Narratives
- Pro-establishment narrative, as provided by American Thinker. Economic sanctions have certainly made life difficult for Russian President Putin, but they'll never work to completely thwart the invasion. The only thing that will work is providing more military assistance to the Ukrainian army.
- Establishment-critical narrative, as provided by Naked Capitalism. The US is the one who started this war, and the reason was not to fight for democracy but to isolate Russia from the oil market. NATO's expansion has always been aimed at controlling the Baltic Sea and with it Russia's means of exporting resources. Though neoconservatives have tried hard to isolate Russia completely — e.g. potentially disrupting the Nordstream pipeline — the nations of the world won't overhaul their economies just to cave to US hegemony.