The European Union (EU) has imposed a slew of economic sanctions on Russia. The assets of oligarchs accused of supporting President Putin have been confiscated. European banks have been ordered to stop doing business with Russian banks, and imports of certain Russian commodities have been prohibited. However, several political experts believe that these sanctions are ineffective because they do not affect the heart of the Russian economy, namely the energy sector.
Aim for the Legs Rather than the Heart?
Russia is Europe's largest oil supplier, providing over a quarter of EU oil imports in 2020, according to data from the bloc's statistics office Eurostat. At the same time, energy accounts for over 50% of Russia's exports. In other words, any sanction that would impact this sector would be more effective than any other sanction because it would directly touch the heart of the Russian economy. However, banning Russian gas and oil imports may force the EU to find new energy suppliers. This will have a high cost and require a lot of investment in alternative energies, and not all countries can afford it. Europe is, therefore, faced with a dilemma that undermines its credibility regarding its desire to weaken Russia.
Personal Interests or Alliance?
EU member states, including France, are actively campaigning for international sanctions against Russian oil and gas. Indeed, in order to be consistent with the EU's position in this conflict, France believes that the union should speak with one voice and impose harsher sanctions, as recalled by Bruno Lemaire, France's Minister of Economy and Finance. However, France's position is not shared by Germany, which is another EU giant.
Like Italy, Germany is highly dependent on Russia for energy. An embargo on European gas and oil imports would have more consequences on these countries than on France. Thus, the personal interests of each member state is making the adoption of a resolution more than difficult.
However, talks are currently underway to persuade all EU members to speak with one voice, and a shift in Germany's position could help resolve the issue. Fortunately, Germany has already announced plans to cut its Russian oil imports in half by the summer (beginning in June).
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