FX.co ★ EU considers embargo on Russian oil

According to NewYorkTimes, citing a source with the knowledge of the matter, in response to Russia's invasion of Ukraine, the EU is preparing to impose a ban on oil from Russia.

The EU will be introducing a ban on the Russian commodity gradually. Meanwhile, an embargo on imports of coal will come into force in August. Until then, the EU will be seeking alternatives to Russian energy supplies.

Ukraine has repeatedly called on the EU to abandon Russian energy. The EU members have discussed direct sanctions even despite a surge in energy prices in Europe.

Meanwhile, Hungary has opposed a ban, warning of serious economic risks. This is what might have made Brussels consider the possibility of a step-by-step approach. Speaking of alternative suppliers, OPEC announced it would not be able to offset the gap left by the ban on Russian commodities.

A week ago, the European Parliament called for a complete ban on Russian oil, coal, natural gas, and nuclear fuel.

The EU will discuss the possibility of an embargo as soon as the presidential election in France is over as they fear it might reduce incumbent President Emmanuel Macron's chance of being re-elected, the NYT source said.