- Slovakia and Hungary to Phase Out Russian Oil Imports by 2027.
- EU Reduces Russian Crude Imports to 3%.
- Commission Proposes New Measures to Tackle Shadow Tankers.
The EU is ramping up attempts to fight Russia’s increasing shadow fleet of tankers, used to avoid Western sanctions and the G7 price cap. These tankers are usually old and in bad shape, carrying environmental risks with them due to their poor state and unclear ownership, reports S&P Global.
Targeting Slovakia and Hungary’s Russian Oil Imports
“These vessels are often old, in bad shape, with obscure ownership and insurance,” the Commission stated, highlighting the potential for oil spills and other environmental disasters. As part of the broader strategy to end EU reliance on Russian energy, the European Commission has directed Slovakia and Hungary to create formal strategies to eliminate Russian oil imports by 2027. “Sufficient infrastructure is available to replace such oil imports with non-Russian supply,” the Commission affirmed, encouraging these countries to prioritise alternative supply infrastructure, especially the Adria pipeline connected to Croatia’s Omisalj port.
EU’s Attempts to Decrease Russian Crude Imports
The EU has managed to cut back its Russian crude imports, with the imports falling from 27% of the total of the bloc in 2022 to a mere 3% now. Fresh new rules are, however, to be implemented next month to further chip away at Russia’s oil revenues. The Commission’s roadmap also recognises that Russian oil imports still finance Moscow’s war in Ukraine despite repeated sanctions.
International Diplomacy and Maritime Mission
In response to the shadow fleet, the EU will intensify diplomatic engagement with third parties, especially the flag states of ships. It will also increase cooperation with the International Maritime Organisation (IMO) in order to apply more stringent safety measures. Moreover, the EU can send a Common Security and Defence Policy mission to track sea traffic and board suspicious ships under certain circumstances. “These vessels are often old, in bad shape, with obscure ownership and insurance,” the Commission said.
Sharpen the focus on Slovakia and Hungary’s energy security
Slovakia and Hungary are still highly dependent on Russian pipeline oil, with Russian oil making up more than 80% of the two nations’ total oil imports in 2023-2024. Even after the EU imposed a ban on seaborne Russian crude in December 2022, a pipeline supplies exemption has enabled the two nations to keep importing Russian oil. The Commission will ask Slovakia and Hungary to report back nationally by 2025 with their plans to drop Russian oil by 2027.
Monitoring and Infrastructure Development
The EU’s proposed actions also involve tracking Slovakia and Hungary’s shift away from Russian oil, with an emphasis on building the infrastructure to facilitate non-Russian oil supplies. Since the Czech Republic is already well on its way to substituting Russian oil, Slovakia and Hungary must now diversify their oil imports and secure energy.
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Source: S&P Global
