Baltic states urge EU to speed up oil ban on russia - media

The Baltic states have urged Brussels to speed up the implementation of delayed plans to ban russian oil imports, as EU fears of a serious energy crisis amid the US-Iran war have not been met.

The portal of the influential business publication FT reports this.

According to FT sources, at a meeting of EU energy ministers on Friday, June 26, Estonia, Latvia and Lithuania called for a proposal to phase out russian oil imports, arguing that russian energy exports help Moscow finance its war against Ukraine.

EU Energy Commissioner Dan Jørgensen did not comment on the remarks during a closed-door meeting. However, the European Commission has promised to consider the proposal.

The calls come as shipping in the Strait of Hormuz gradually reopens after the US and Iran agreed to extend a ceasefire, which should boost oil markets. About a fifth of the world's oil and gas normally passes through the crucial Persian Gulf waterway.

Since russia's full-scale invasion of Ukraine in February 2022, the EU has taken a number of steps to wean itself off russian energy supplies. The European Commission estimates that russian oil imports will account for 2% of total supplies in 2025, down from 27% at the start of 2022, but that would still amount to 9.7 million tonnes of crude.

The EU has agreed to phase out russian gas from its energy mix by autumn 2027. But the war in the Middle East has put those plans on hold. A proposal to ban russian oil imports was due to be put on the table on 15 April, but was removed from the European Commission's previous agenda in March.

Asked about the prospects for a ban, Poland's deputy energy minister Wojciech Wrochna told the FT that Warsaw saw it as necessary "by the end of the year".

"But we understand the concerns about prices, availability [of supplies] and competitiveness that could result from this. This is the price we have to pay to become independent of russian resources," he added.

An interim deal between the US and Iran has helped boost cargo traffic through the strait. The European Commission said on Friday that the oil market had "demonstrated depth and resilience" despite warnings that Europe could run out of jet fuel.

According to Jørgensen, the situation in the Middle East makes it more likely that Europe will be able to avoid a shortage of jet fuel and other products this summer.

"We have to accept that even if the US-Iran deal is concluded, it will take months for the oil market to return to normal and years for the gas market," he added.

Damage to energy infrastructure in countries such as Qatar, the largest exporter of liquefied natural gas to Europe, means that some facilities will not be able to resume production quickly even if the truce holds.

The European Commission is also looking to accelerate electrification to help Europe transition away from fossil fuels. EU countries agreed on Friday on a new set of rules that will speed up permitting and help build cross-border power lines. Late last year, EU countries agreed that the European Commission would consider a ban on russian oil imports, but talks on the measure stalled after Iran blocked the Strait of Hormuz in response to US-Israeli strikes. The closure of the vital energy waterway has raised concerns about an energy crisis.