European diplomats will push to agree an embargo on Russian oil at an extraordinary Brussels summit set for May 30-31, with Reuters noting clarifications from sources close to the talks. The EU faces a critical moment as leaders weigh a move that could reshape its energy imports and economic links with Moscow.
Bloomberg reports that discussions are expected to resume next week, while a senior EU diplomat cautions that many details remain unresolved before any decision can be announced. The EU can impose sanctions only with unanimous agreement from all member states, which complicates swift action even as pressure builds to curb Russian energy revenues.
European Commission President Ursula von der Leyen warned on May 24 that reaching a consensus on an oil embargo at the May summit was unlikely. She suggested that the summit may not be the right venue for finalizing such a measure. The Commission has proposed that most member states phase out Russian oil imports by year-end, while giving certain countries more time if needed. There is concern that an immediate ban could prompt Russia to redirect crude to the world market and push up prices, potentially funding its military operations.
The embargo could be bundled into the sixth sanctions package, which would also remove Sberbank from SWIFT and extend personal sanctions. Hungary has blocked the package in the past, arguing that its economy would suffer without Russian fuel, given limited alternatives. Slovakia and the Czech Republic have voiced similar worries. Negotiations have stretched for weeks.
To break the impasse, the European Commission proposed limiting the embargo to oil carried into the EU by sea, allowing continued Russian oil deliveries via the Druzhba pipeline to member states that depend on it until other sources are secured. Some nations oppose splitting sea and pipeline supplies, fearing price distortions or sanctions being watered down.
Hungary remains the main obstacle, with Budapest asking for EU funds to expand Druzhba capacity and to assist with converting refineries from Russian Ural crude to Brent. Hungarian officials argue that a faster transition requires financial support, and they estimate investments of around 550 million euros to modernize refining and reduce dependence on Russian oil.
Rikard Jozwiak of Radio Free Europe notes that Hungary seeks additional exemptions from sanctions, along with questions about the impact on real estate transactions by Russians within the EU. Bloomberg has reported that the Commission plans to veto real estate deals by Russians and Russian-registered entities as part of the sixth package, though sources indicate some provisions were softened due to pressure from Cyprus.
German Economy Minister Robert Habeck warned on May 29 that European unity could be tested as the bloc debates the sanctions. Bloomberg highlights that a large share of pipeline oil to Germany and Poland has already led these countries to reject Russian supplies despite EU actions.
Amid the pressure, sanctions extend beyond oil. Western authorities have also targeted Russia’s largest banks, restricting transactions that previously financed oil imports. Forbes quotes traders who say demand for Russian crude remains, albeit at steep discounts. Urals typically traded at a discount to Brent, but mark‑downs have widened to around 35-40 dollars per barrel in some cases. Many buyers now push for delayed payments or barter arrangements, a practice traders describe as a form of parole sale.
Another option discussed is the use of a mixed-oil approach, a tactic seen in the past with other producers, where Russian oil is blended with residues from different grades before sale. The resulting product can resemble Russian crude closely enough to be marketed to buyers who would otherwise avoid Russian supplies. This approach underscores the complexity of sanctions enforcement and the resilience of the global oil market.
Russia has tightened data on its oil exports in response to sanctions, with officials indicating that publishing detailed figures could be used to exert additional pressure on the domestic market. As the EU weighs its next steps, the broader global energy landscape remains unsettled, with Western buyers keeping a cautious stance on Russian crude while seeking alternative sources and pricing strategies.