European Council to discuss the European energy crisis
The European Council will gather today to discuss the ongoing European energy crisis.
The meeting comes after a proposal by EU diplomats to water down the proposed Russian oil ban in order to get Hungary’s support. Budapest has so far opposed the package, stating that a ban on Russian oil would deal a severe blow to the Hungarian economy. The new proposal would bar Russian oil delivered by ships but permit oil sent via pipelines, maintaining fuel supplies for landlocked countries such as Hungary.
The Council is also set to discuss REPowerEU. The plan, announced two weeks ago, looks to increase energy investment in Eastern Partnership countries, including Ukraine, while setting the stage for future renewable hydrogen trade. Ukraine has one of the largest gas transportation systems in the world, giving it the potential to be a major hydrogen exporter.
Amid increased pressure on the EU to take renewed action against Russia, expect the Council to approve the most recent iteration of the oil ban. In the longer term, expect significant investment into the energy sectors of Ukraine and other Eastern Partnership countries including Moldova, in order to catalyze their green transitions, help achieve the EU’s zero carbon emissions goal and address the European energy crisis.
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