EU sanctions swung to Russia's oil may hurt the European economy even more

On the 4th, the European Commission formally submitted a new round of sanctions, including an embargo on Russian oil, and once again swung the sanctions stick to the Russian energy sect.

Energy crisis worsens

The sixth round of proposals for sanctions against Russia submitted by the European Commission on the 4th includes a complete ban on the import of Russian oil by the end of this year, that is, the EU will phase out Russian crude oil within six months and phase out Russian refined oil by the end of this ye.

Following the EU's announcement on April 8 to stop importing Russian coal from August, the EU once again "opens up" to Russian energy in order to achieve the purpose of significantly reducing its dependence on Russian ener.

Sanctions on Russian oil are a "double-edged sword" for the .

Russia expects oil production to fall by about 17% this ye.

According to Michael Holstein, chief economist of the German Central Bank, the embargo on Russian oil may continue to push up oil prices in the coming months, and German inflation may remain high for a long ti.

Internal differences are obvious

Just as EU member states disagree on Russia's gas "ruble settlement order", countries are also divided on sanctions against Russian o.

Since the escalation of the Russian-Ukrainian conflict, the EU has repeatedly expressed its desire to "get rid of" Russian oil and gas in rounds of sanctions, but it is quite difficult for the EU to actually do th.

The sanctions plan for the Russian oil embargo requires the unanimous consent of the 27 member states to take effe.

Hungary's prime minister, Gujaš Gergej, said Hungary was "ready to reject" the proposal, which would take about five years and cost "a lot of money" to switch oil and gas sourc.

Risk of stagflation intensifies

Soaring energy prices, record inflation, and supply chain shortages have heightened the risk of stagflation in Europe, which will hinder the pace of post-coronavirus recove.

The report by the Belgian think tank Bruegel Institute said that the embargo of Russian oil would have negative consequences for the EU, at least in the short term, causing damage to the EU and the world economy as a who.

Sara Mathieu, a member of the European Parliament, said the sanctions would not only damage the Russian economy, but would also "affect the homes, jobs and wallets of EU citizens" and could increase social inequality, unemployment and energy pover.

Eugenio Pinto, a professor at the Economics Department of the Free University of International Social Sciences in Rome, said in an interview with Xinhua News Agency that if countries that are highly dependent on Russian energy stop importing Russian energy, they will be forced to adopt an energy quota system, and economic recovery will fall into stagna.

Peter Adrian, chairman of the German Chamber of Commerce and Industry, said that higher oil prices will increase the financial pressure on companies, especially for energy-intensive industrial and logistics compani.

In an interview with Xinhua News Agency a few days ago, Morditz Choba, research director of the Eurasian Center of the Johann von Neumann University in Hungary, said that sanctions alone will not help to resolve the conflict between Russia and Ukrai.