Europe steps back from US effort to ban Russian oil and gas

There are fears such a drastic move could have severe economic consequences

Europe relies on Russia for crude oil and natural gas but has become more open to the idea of a ban on Russian products. AFP

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European countries distanced themselves from a US effort that may result in a ban on Russian oil imports, as leaders from Moscow and Kiev prepared to meet in Belarus for a third round of ceasefire talks.

Western countries are in agreement that they must move away from their dependence on Russian gas. There are disagreements over how quickly that should happen and if the Russian oil and gas industry should be sanctioned following Moscow’s invasion of Ukraine.

“Europe has deliberately exempted energy supplies from Russia from sanctions,” German Chancellor Olaf Scholz said on Monday.

“Supplying Europe with energy for heat, mobility, electricity supply and industry cannot be secured in any other way at the moment. It is therefore of essential importance for the provision of public services and the daily lives of our citizens.”

Europe relies on Russia for crude oil and natural gas but has become more open to the idea of a ban on Russian products.

UK Prime Minister Boris Johnson, speaking alongside Canadian Prime Minister Justin Trudeau and Dutch counterpart Mark Rutte, said “we have to be mindful” that some countries held “different dependencies”.

“You can’t simply close down use of oil and gas overnight, even from Russia. That’s obviously not something every country around the world can do,” he said, adding that the UK could quickly shift away from Russian gas.

“What we need to do is make sure we are all moving in the same direction, and we all share the same assumptions and we accelerate that move, and I think that is what you are going to see. You’ve heard that from leaders around the world,” Mr Johnson said.

“But clearly there is going to be a transitional period. We are going to have to look for supply, we are going to have to look for substitute supplies from elsewhere, and we are going to have to do it together across the entire coalition of countries that is now condemning Putin’s actions.”

Cars are left abandoned on a road as residents flee the town of Irpin, Ukraine after days of heavy shelling. Reuters

A Ukrainian soldier helps a family fleeing from Irpin. Reuters

A bus passes the Duke of Wellington statue, which has a traffic cone in the colours of the flag of Ukraine placed on top of it, in Glasgow, Scotland. AP

Ukrainian children sleep at the reception point at the train station in Przemysl, Poland. Reuters

Smoke rises as a Ukrainian soldier stands by the only escape route used by locals to flee from the town of Irpin. Reuters

A man flees from Irpin. Reuters

A screengrab from footage released by the Russian Defence Ministry shows a purported Russian tank unit advancement in the Kyiv region. AFP

People walk on debris of residential buildings damaged by shelling in the Zhytomyr region. Reuters

A damaged residential building after Russian multiple rocket launchers shelled the area in the southern city of Mykolaiv. AFP

Ukrainian soldiers sit in their armoured vehicle after fighting against Russian troops and Russia-backed separatists near Zolote village, Luhansk region. AFP

A woman offers accommodation for people fleeing Ukraine at the main railway station in Berlin, Germany. Getty Images

A soldier holds a helmet as a wedding crown during the ceremony for members of the Ukrainian Territorial Defence Forces Lesia Ivashchenko and Valerii Fylymonov, at a checkpoint in Kyiv. AP

Ukrainian soldiers carry a woman fleeing the town of Irpin. AP

A factory and warehouse burn after being bombarded in Irpin. AP

Ukrainian soldiers near Zolote. AFP

A Ukrainian refugee boy, wearing a blanket on his shoulders, warms his hands with a gas heater shortly after crossing the Siret border into northern Romania. EPA

People demonstrate against the Russian military operation in Ukraine in Buenos Aires, Argentina. EPA

First responders work at the scene after a missile hit a building at Havryshivka Vinnytsia International Airport in Vinnytsia, Ukraine. Reuters

A woman at a checkpoint on the road to Kyiv after her evacuation from a nearby town. AFP

A placard in the Ukrainian colours is held up at an anti-war demonstration the Bebelplatz square in Berlin, Germany. Reuters

A Ukrainian serviceman helps an elderly woman in Irpin, 20 kilometres north-west of the capital Kyiv. AP Photo

Protesters cry during a demonstration in support of Ukraine at the Plaza Catalunya square in Barcelona. AFP

A man walks past a machine gun at a checkpoint next to the last bridge on the road that connects the town of Stoyanka to the outskirts of Ukraine's capital Kyiv. AFP

Ukrainian servicemen put a wounded man on a stretcher in Irpin. AP Photo

People board a train to return to Ukraine after getting supplies in Zahony, Hungary. AP Photo

Balloons in the colors of Ukraine during a demonstration against the Russian attack on Ukraine, in Mainz, Germany. AP

A Ukrainian girl helps to weave a camouflage net for the Ukrainian army, in Odesa. EPA

Molotov cocktails prepared by a group of volunteers in Odesa. Hundreds are made every day. EPA

Ukrainian servicemen assist people fleeing the town of Irpin after crossing the Irpin River on an improvised path under a bridge that was destroyed by a Russian air strike. AP Photo

A woman holds a dog while crossing the Irpin River on an improvised path under a bridge that was destroyed by a Russian airstrike, while assisting people fleeing the town of Irpin, Ukraine. AP Photo

Marina Yatsko and her boyfriend Fedor comfort each other at a hospital in Mariupol after her 18-month-old son Kirill was killed by shelling. AP Photo

Ukrainian civilians receive weapons training in a cinema in Lviv, western Ukraine. AP Photo

Residents flee the town of Irpin, near Kyiv, Ukraine. AP Photo

Ukrainian soldiers carry a sick woman as civilians flee Irpin, on the outskirts of Kyiv, after Russian attacks. AP Photo

Captured Russian soldiers at a press conference in the Interfax news agency in Kyiv, Ukraine. AP Photo

Ukrainians beneath a destroyed bridge in Irpin. AP Photo

A woman fleeing Ukraine on a bus near the border crossing in Korczowa, Poland. AP Photo

A Ukrainian soldier and a militia man help a fleeing family on the outskirts of Kyiv, Ukraine, on March 5, 2022. AP Photo

Smoke rises after shelling by Russian forces in Mariupol. AP Photo

People at a hospital during shelling by Russian forces in Mariupol. AP Photo

Displaced Ukrainians at the Resurrection New Athos Monastery in the western Ukrainian city of Lviv. AFP

Mr Rutte conceded that it was a “painful reality” that many countries were “still very much dependent on” Russian gas and oil.

The price of oil surged on Monday to its highest for 14 years after Washington revealed that it is in talks with European allies over a ban on Russian imports.

Gas prices soared by more than 70 per cent to hit an all-time high as fears over supplies from Russia continued to rock the market.

Prices are now more than 20 times higher what they were two years ago, increasing on Monday from records set last week.

The EU relied on Russia for about 46 per cent of its gas and around a quarter of its oil in the first part of last year.

“We have to dramatically reduce our dependency on gas and oil from Russia. That will take time,” Mr Rutte said.

Forcing companies to stop doing business with Russia now would have “enormous consequences”, he said.

“It would basically undermine supply chains the world over, particularly in Europe. It would also have an impact on Ukraine itself.”

US President Joe Biden was scheduled to hold a video conference call with the leaders of France, Germany and the UK on Monday as his administration sought their support for an imports ban.

During a visit to Latvia, US Secretary of State Antony Blinken called Russian attacks on humanitarian corridors "shameful", but he again ruled out a Nato-imposed no fly zone over Ukraine.

“There continue to be reports of attacks by Russian forces on agreed upon humanitarian corridors," he said. "We’ve seen scenes like this before in Europe. Now Russia is starving out cities like Mariupol. It’s shameful."

French President Emmanuel Macron on Monday accused his Russian counterpart Vladimir Putin of hypocrisy and cynicism after Moscow said it would open humanitarian corridors to civilians from several Ukrainian cities to leave, but only to Russia or Belarus.

"All this is not serious, it is moral and political cynicism, which I find intolerable," he said.