A worker carries gas cylinders from a truck in Poland.
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The European Union is discussing new sanctions against Russia – and this time they could affect the energy sector.
Three European officials, who declined to be named due to the sensitivity of the talks, told CNBC that the ministers would consider imposing energy sanctions on Russia when they meet on Friday.
EU foreign ministers are meeting in Brussels to discuss next steps as Moscow continues to bomb Ukraine. Fears have intensified in the last 24 hours after Russia’s attack on Europe’s largest nuclear power plant – in Zaporozhye, Ukraine – which has now been taken over by Russian forces.
Speaking before the meeting, Joseph Borrell, the EU’s foreign policy chief, told CNBC’s Steve Sedgwick that “everything is on the table”.
An official told CNBC that ministers would discuss energy sanctions today, “but no big decision is expected.” While another said that both defensive and offensive sanctions against Russia would be considered.
Representatives of Ukraine, the United States, Canada and the United Kingdom will also take part in the discussions.
A third official said Friday was a good time to take stock of where the West is in terms of sanctions and to show “transatlantic unity and good co-operation between the EU and NATO”.
The EU has already taken bold steps to sanction the Kremlin, in particular by blocking Russian banks from the international payment system SWIFT. However, the pressure on the block is intensifying to do more.
Renew Europe, the liberal party in the European Parliament, said on Thursday: “We call for a complete economic blockade banning imports from Russia, including oil and gas, and investment!”
Russia is a key source of energy for the European Union.
In 2021, the EU imports about 45% of the country’s gas, according to the International Energy Agency. In 2020, Russian oil imports account for about 25% of the bloc’s oil purchases, according to the region’s statistical office.
Polish Prime Minister Mateusz Morawiecki said Sberbank and Gazprombank, two major Russian banks, have not yet been affected by EU sanctions because they facilitate transactions involving energy supplies to the EU.
“This is unacceptable,” he said. “Poland is pushing for sanctions to fully cover all Russian entities that finance the war.
The United States has also said that energy sanctions are on the table, but the costs of enforcing them will have to be analyzed.
Applying an energy embargo is likely to mean higher costs for consumers in the US and in the EU in particular.
Emre Pecker, an analyst at consulting firm Eurasia Group, told CNBC on Thursday that energy sanctions against Russia would be painful.
“The longer this decision is delayed and the more we get out of winter and into spring, the easier it becomes to move,” Pecker added.
The bloc has so far said any exciting effects of sanctioning Russia are worth it, given that the Kremlin is not only attacking Ukraine but also Europe’s democratic values.