Europe’s appalling cowardice over Ukraine has given new life to Putin
Half hearted Russian oil ban highlights EU’s difficulty in imposing effective sanctions
JEREMY WARNER 31 May 2022 • 6:43pm
The tables seem to have turned once again. Slowly but surely, Putin is regaining the initiative in his
murderous assault on Ukraine. That’s partly down to a more competent, if extraordinarily destructive, military campaign.
But it is also because the Western alliance assembled against him is quite plainly fracturing, particularly within the European Union, where — predictably — it is proving virtually impossible to agree the common, hardline approach required to help Ukraine defeat Vladimir Putin’s ambitions. Volodymyr Zelensky sense of outraged grievance is entirely justified. He is being badly let down.
As it is, Europe continues, through its
purchases of Russian oil and gas, to finance the Kremlin’s rampage to the tune of nearly $1bn (£790m) a day. That it should do this while coincidentally promising to supply the military hardware Ukraine needs to defend itself would be laughable were not the consequences so calamitous.
The initial bravado of uncompromising sanctions against Russia has given way to messy half measures, and the pursuit of unconditional Russian defeat has softened to include some sort of a peace deal that would see Ukraine give up large tracts of its territory.
Arms shipments are meanwhile falling short, while the intended EU ban on Russian oil has been watered down so as to exclude Hungary. Even as the European Commission demands that everyone holds the line, Italy has explicitly called for peace talks that would cede ground to Putin.
The suspicion that even France and Germany are preparing to sell Zelensky down the river has been heightened by a recent
joint telephone call from France’s Emmanuel Macron and Germany’s Olaf Scholz to Putin’s Kremlin.
It is as if Europe’s heart isn’t really in Ukraine’s struggle. Economic self interest is taking priority over principled defence of democracy.
In any case, the gap between the hardline rhetoric and the seeming reality of willingness to compromise grows by the day.
Putin must be laughing all the way to the bank, because the most palpable consequence so far of the EU’s half hearted oil embargo has been to further turbocharge the oil price.
The higher it goes, the more Putin makes, even at the discounted prices he is forced to accept as Europe scales back its purchases. Be it China or
India, there will always be willing alternative buyers.
It all looked so different a month ago. Thanks to the bravery of the Ukrainian people, Putin’s efforts to overrun the county had been thwarted. European leaders spoke boldly of willingness to bear the economic hardship of banning imports of Russian oil and gas.
In a speech to the European Parliament, Ursula Von der Leyen, the European Commission President, confidently predicted a European-wide ban on Russian oil “within days”.
In the event, it has taken her four weeks to hammer out a deal, and even then it has come at the price of giving
Hungary’s Putin sympathising Viktor Orban an exemption.
Orban has used his veto over any embargo to maximum effect, once again highlighting the difficulty Europe faces in imposing effective punishment on Russia for its growing litany of war crimes, and indeed more broadly the tortuous process of getting almost anything done in Europe when the approval of 27 different nations is first required.
Quite where all this leaves the “integrity” of Europe’s single market, defended to the last in negotiations with the UK over Brexit and Irish Protocol, is anyone’s guess. It plainly means nothing in the case of Hungary.
With the world bifurcating into effectively two separate oil markets — cheap Russian product and the more expensively priced output from elsewhere that the EU has committed itself to — the Hungarian carve out gives a natural and unfair competitive advantage over all others in the EU. Hungary’s industries and refineries will continue to
enjoy the fruits of heavily discounted Russian energy, while everyone else has to pay through the nose at an ever inflating market price for alternatives.
The whole sorry mess raises serious questions about whether an oil embargo is an effective form of sanction in the first place. Russia is the world’s largest exporter of gas, and one of the largest of oil.
Excluding it from European and American markets is, through higher prices, doing untold damage to the economies of the West while failing to deny Putin the funding he needs to finance his war.
In its hunt for alternative buyers, the Kremlin is being forced to offer bargain basement prices, but will still be in the money, such has been the inflationary effect on overarching international oil prices.
It is increasingly questionable who is damaged most by the embargo — Putin or the West. Still, Europe’s suggested ban is I suppose progress of sorts.