Despite a sharp rise in energy prices amid the war in Iran, the European Union has pushed back against a possible relaxation of sanctions on Russian oil.
“We must continue to exert maximum pressure on Russia,” EU Economy Commissioner Valdis Dombrovskis said Tuesday, March 10, in Brussels.
He said lifting part of the oil sanctions would be “counterproductive” and “would strengthen Russia’s military capability.” “It is very important to uphold the price cap on Russian oil in the strictest possible way,” the commissioner added.
Dombrovskis was responding to U.S. President Donald Trump’s statement about plans to suspend some previously imposed restrictive measures on Russia’s oil exports, made after a phone call with Russian President Vladimir Putin.
In October, the U.S. imposed sanctions on Russian oil giants Rosneft and Lukoil.
Any easing of sanctions on Russia discussed amid rising global oil prices was also rejected by German Chancellor Friedrich Merz.
“I share the American president’s hope for a quick end to this war,” he said. “And if it ends quickly, we will see a relatively fast return to normal conditions in the oil and energy markets.”
According to Merz, if there is a choice between sanctions and solidarity, Germany’s position is clear: it supports Ukraine and is ready, if necessary, to endure a period of high energy prices.
As Bloomberg reports, the U.S. told its G7 partners that any easing of sanctions on Russia in response to the sharp rise in energy prices would be temporary.
That decision by the U.S. administration is “largely limited both in time and in the scale of the measures,” the agency quoted Commissioner Dombrovskis as saying.
He said Washington does not expect this move to have a significant impact on Russia’s oil revenues.
At the same time, the U.S. “broadly shares” Europe’s aim of maintaining economic pressure on Russia over its ongoing war against Ukraine, he added.
According to Bloomberg, U.S. officials told Europeans that easing sanctions on Russia’s oil sector would primarily affect deliveries to India.
Global oil prices have jumped sharply because of the U.S. and Israel’s war against Iran.
Authorities in Tehran, amid the fighting, have blocked the Strait of Hormuz, which handles about 20% of the world’s oil trade.
After that, Trump issued a temporary waiver for India to purchase oil from Russia.
Meanwhile, according to Bloomberg, India’s largest lender, State Bank of India (SBI), is refusing to process payments for Russian oil over doubts about the durability of Trump’s decision and potential risks.
