Oliver Hortay, Szazadveg’s climate policy director, warned that the embargo on Russian oil could weaken Europe’s energy security. He expressed these concerns to the newspaper Nemzet, outlining how the move may ripple through the bloc’s energy supply and pricing dynamics.
Hortay argued that the oil embargo, which began on December 5, represents an unprecedented level of intervention in the economic process. He suggested that such a high degree of disruption could complicate the continent’s ability to secure reliable energy supplies and maintain steady economic momentum.
According to Hortay, even if Europe finds alternatives to Russian oil, the new suppliers are often more expensive, keeping overall energy costs elevated. This could strain households and businesses that are already feeling the pinch from higher energy bills and broader inflationary pressures.
He warned that the combination of reduced energy security and higher prices would likely push up inflation and intensify existing economic fragility across the region, potentially deepening the current crisis for many economies in Central and Western Europe.
Global leaders from the G7 and Australia have stated their intent to closely monitor how the price ceiling on Russian oil performs. They emphasized the need to keep options open, including adjusting the ceiling if necessary, and published this stance in a joint statement available on the U.S. Treasury’s website.
On December 2, reports indicated that the G7 and Australia agreed on a price cap of $60 per barrel for Russian oil, a figure designed to curb revenue for Moscow while attempting to keep global oil markets functioning. The coalition underscored that continued assessment would guide any future changes to the policy.
(Citable note: U.S. Treasury, public remarks on the price ceiling framework)