EU agrees on Russia sanctions so far, but energy divides

The EU imports 90% of the natural gas used to generate electricity, heat homes and supply industry, with Russia supplying almost 40%

The European Union preserved a sense of rarely seen unity through four rounds of unprecedented sanctions against Russia over its invasion of Ukraine. But at a summit Thursday, the 27 leaders faced division on the biggest issue of all: energy.

During the first month of war, EU nations imposed tough measures targeting Russia's economy and financial system as well as President Vladimir Putin and Russian oligarchs.

Unlike the US, they have so far spared Russian fossil fuels, highlighting the EU's reliance on the country's oil, natural gas and coal to keep homes warm and the wheels of industry turning. “We are not at war with ourselves,” Belgian Prime Minister Alexander De Croo said at the summit in Brussels, where sanctions and energy were key topics. “Sanctions must always have a much bigger impact on the Russian side than on ours.”

He reflected the position of EU nations like Germany, Austria and the Netherlands. They are running up against other member states situated closer to Russia that want tougher action now. "As long as we are purchasing energy from Russia, we are financing the war, and this is the big problem that we have,” Finland Prime Minister Sanna Marin said.

She was joined by Baltic leaders in demanding swift action.

“We have to continue to isolate Putin's economy — Russia's economy — to stop the money flowing into the war machine,” Latvian Prime Minister Krisjanis Karins told reporters. “The most logical place to move forward is in oil and coal.”

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The EU imports 90 per cent of the natural gas used to generate electricity, heat homes and supply industry, with Russia supplying almost 40 per cent of EU gas and a quarter of its oil.

Instead of an embargo, the European Commission, the EU's executive arm, has proposed slashing the bloc's dependency on Russian gas by two-thirds this year. The EU is in talks with the US to ensure extra deliveries of liquefied natural gas and have also started discussions with other suppliers.

Maria Zakharova, spokeswoman for the Russian Foreign Ministry, said Thursday that European nations that don't want to work with Russia on energy should “just tell their citizens who is destroying their prosperity and how. We will cooperate with those who are interested in ensuring their own energy security.”

High energy prices triggered by a supply crunch in Europe have for months triggered rising energy bills and prices at the pump, worsening as the war has jolted energy markets.

Last year, the EU's imports of Russian goods were worth 158.5 billion euros, with mineral fuels accounting for 62 per cent, or 98.9 billion euros, according to the European Commission.

Karins said the Ukraine war was a prime example where morals should trump money. Despite Latvia's “high dependency on Russian oil and gas,” businesses support a halt to trade in these goods, he said. “They're telling to me sanctions are a necessity because we have to stop Putin's regime,” he said. “It's just money. If you're alive, if your infrastructure is fine, you can re-earn the money.”

Greenpeace has accused the European Union of bankrolling Russia's war by continuing to purchase its energy supplies. “Fossil fuels have a history of being connected with conflict and war — wherever they come from, governments must phase them out as quickly as possible, not look for new suppliers,” Greenpeace EU director Jorgo Riss said.

But Dutch Premier Mark Rutte signalled that EU countries were still too divided over the question of energy sanctions against Russia to produce an agreement on the matter at the summit. He stressed the four sets of sanctions that the EU has already imposed against Russia over the past month. “We will discuss sanctions; I don't think we will decide on sanctions,” Rutte told reporters. “Don't forget that the sanctions package in place at the moment is by far the toughest package I've seen in my lifetime as a politician.”

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