The most perverse response to the Russian invasion of Ukraine has been to impose sanctions on named individuals while continuing to top up the Kremlin’s war chest by buying its oil and gas. The worst culprits are countries like Germany and Italy, which import more than a third of their energy requirements from Russia. Eastern European countries such as Hungary are even more dependent.
To stop these purchases would mean serious economic hardship, which European countries are not prepared to accept. The UK, while less heavily reliant, nevertheless still buys energy while at the same time giving weapons to Ukraine to fight the country we are otherwise helping to bankroll. One estimate suggested that, since the annexation of Crimea in 2014, Britain has given Russia enough money to buy 8,000 battle tanks.
The Government has announced a gradual reduction in the relatively small volume of imports from Russia with the aim of eliminating it by the end of the year. But this will make little difference to Vladimir Putin unless the big payers do the same. The EU is this week holding crucial discussions about further sanctions aimed at stopping all oil imports by the end of the year but there are serious disagreements. Hungary has said it will veto the plan unless given an exemption.
The key player is Germany, which has called for a phased ban, though Olaf Scholz, the Chancellor, changes policy almost weekly. Berlin has indicated it is now in favour of an embargo but needs time to prepare for an end to crude shipments from Russia. But they cannot avoid the reality that, to help Ukraine withstand Russian aggression, they must be prepared to take an economic hit.
The most perverse response to the Russian invasion of Ukraine has been to impose sanctions on named individuals while continuing to top up the Kremlin’s war chest by buying its oil and gas. The worst culprits are countries like Germany and Italy, which import more than a third of their energy requirements from Russia. Eastern European countries such as Hungary are even more dependent.
To stop these purchases would mean serious economic hardship, which European countries are not prepared to accept. The UK, while less heavily reliant, nevertheless still buys energy while at the same time giving weapons to Ukraine to fight the country we are otherwise helping to bankroll. One estimate suggested that, since the annexation of Crimea in 2014, Britain has given Russia enough money to buy 8,000 battle tanks.
The Government has announced a gradual reduction in the relatively small volume of imports from Russia with the aim of eliminating it by the end of the year. But this will make little difference to Vladimir Putin unless the big payers do the same. The EU is this week holding crucial discussions about further sanctions aimed at stopping all oil imports by the end of the year but there are serious disagreements. Hungary has said it will veto the plan unless given an exemption.
The key player is Germany, which has called for a phased ban, though Olaf Scholz, the Chancellor, changes policy almost weekly. Berlin has indicated it is now in favour of an embargo but needs time to prepare for an end to crude shipments from Russia. But they cannot avoid the reality that, to help Ukraine withstand Russian aggression, they must be prepared to take an economic hit.