EU Faces Energy Headache: Russian Oil Ban Postponed, Fuel Prices Surge

The European Commission has postponed the planned proposal to permanently ban Russian oil imports, amid rising energy prices driven by the ongoing conflict in the Middle East. The delay also reflects tensions with Hungary and Slovakia, the only two EU states still purchasing Russian oil, over the Soviet-era Druzhba pipeline. The legislation was initially scheduled for April 15 but has now been removed from the calendar. Commission spokesperson Anna-Kaisa Itkonen said no new date is available, but stressed that the EU remains committed to introducing the measure.

Market instability linked to the US-Israel strikes on Iran has pushed Brent crude above USD 100 per barrel and disrupted the Strait of Hormuz, a key route for global oil and LNG supplies. While US President Donald Trump claimed progress in talks with Iran, Tehran denied any agreement. The announcement briefly eased prices, bringing Brent down from USD 112 to USD 102 per barrel. The United States has also temporarily eased sanctions on Russian oil, a move that drew criticism from European officials.

The Commission emphasized that the delay does not signal a shift in policy. Citing President Ursula von der Leyen, Itkonen warned that returning to Russian fossil fuels after the war in Ukraine ends would be a “strategic blunder.” Under existing EU sanctions, Russian oil imports have been banned on a temporary basis, requiring six-month renewals by unanimity, with Hungary and Slovakia benefiting from an open-ended exemption. The delayed proposal would establish a permanent ban, needing only a qualified majority for approval and closing remaining loopholes.

The REPowerEU roadmap has already outlawed Russian gas imports: LNG by the end of 2026 and pipeline gas by autumn 2027. Hungary and Slovakia have challenged these bans legally and indicated they would do the same if the permanent oil ban proceeds. The Druzhba pipeline, which transports low-cost Russian crude through Ukraine, has become a point of contention. Kyiv asserts that the pipeline was heavily damaged in January and requires repairs before transit can resume, while Budapest and Bratislava claim the shutdown is politically motivated, ahead of Hungary’s April 12 elections. The dispute over the pipeline has also stalled a €90 billion loan intended for Ukraine.