Reed Smith Client Alerts

On 31 May, the European Union (EU) agreed the long-awaited sixth package of sanctions, which includes an embargo on Russian oil and a ban on insuring ships carrying Russian oil. The specifics of the sanctions are still being debated, but they are expected to be released later this week.

Russian oil embargo

Under the new sanctions, there is to be a partial ban on the import of seaborne crude oil and petroleum products originating in Russia into the EU by the end of 2022.

There are expected to be certain exemptions to this ban, including Russian oil transported through the Druzhba pipeline to Hungary, the Czech Republic and Slovakia (as land-locked EU states). Such exemptions are intended to be temporary, although there is currently no expiry date in the current legislation.

It is expected that the ban will immediately impact 75 per cent of Russian oil imports and effectively cut around 90 per cent of oil imports from Russia to the EU by the end of the year.