Kremlin says diplomatic expulsions will prompt response as EU now proposes Russian coal ban in new US
MOSCOW: Kremlin spokesman Dmitry Peskov said the expulsions of Russian diplomats by European countries would provoke a reaction from Moscow and complicate international relations.
Germany, France, Italy and Spain are among the countries that have expelled diplomats since Monday.
Peskov said that “we see negatively, we see with regret this narrowing of the possibilities of diplomatic communication, diplomatic work in such difficult conditions, in unprecedented crisis conditions”.
He added that “it is short-sighted and a step that on the one hand will complicate our communication, which is necessary to seek reconciliation. And on the other hand, it will inevitably lead to reciprocal steps.” The European Union executive on Tuesday proposed a ban on coal imports. of Russia in what would be the first sanctions targeting the country’s lucrative energy industry over its war in Ukraine.”
European Commission President Ursula von der Leyen said the EU must step up pressure on Russian President Vladimir Putin after what she called “heinous crimes” around kyiv, with evidence that the Russian troops allegedly deliberately killed Ukrainian civilians.
Von der Leyen said the ban on coal imports was worth 4 billion euros ($4.4 billion) a year and that the EU had already started working on additional sanctions, including on coal imports. oil.
She did not mention natural gas, with consensus among the 27 EU member countries on targeting the fuel used to generate electricity and heat homes harder to secure.
The EU gets around 40% of its natural gas from Russia and many EU countries, including Germany – the bloc’s biggest economy, oppose stopping gas imports.
Until now, Europe has been unwilling to target Russian energy for fear it could push the European economy into recession.
Europe’s reliance on Russian oil, natural gas and coal means finding unanimity on energy measures is a tall order, but recent reports of civilian killings have increased the pressure for tougher European sanctions.
“Taking a clear position is not only crucial for us in Europe but also for the rest of the world,” von der Leyen said.
“A clear stance against Putin’s war of choice. A clear stance against the slaughter of civilians. And a clear stance against the violation of fundamental principles of world order.”
Other measures proposed by the EU executive include sanctions against more people and four key Russian banks, including VTB, Russia’s second-largest bank.
“These four banks, which we have now completely cut off from the markets, represent 23% market share in the Russian banking sector,” von der Leyen said.
“This will further weaken the Russian financial system.”
If the proposal is adopted unanimously by the 27 EU countries, the new sanctions package will also ban Russian ships and Russian-operated ships from EU ports, except for essential products such as as agricultural and food products, humanitarian aid and energy.
New targeted export bans worth €10 billion in sectors covering quantum computers, advanced semiconductors, sensitive machinery and transport equipment have also been proposed.
“With this, we will continue to degrade Russia’s technological base and industrial capacity,” von der Leyen said.
According to European Trade Commissioner Valdis Dombrovskis, 62% of Russian exports to the EU were hydrocarbons last year.
“If we really want to affect the Russian economy, that’s where we have to look,” he said.
“And that’s exactly what is being discussed about this sanctions package.”
Due to its climate ambitions, the EU has been moving away from coal for years.
Coal use has increased from 1.2 billion tonnes per year to 427 million tonnes between 1990 and 2020, but imports have increased from 30% to 60% of coal use.
The European Union gets about 25% of its oil from Russia, while the EU imported 53% of the country’s hard coal in 2020, which accounted for 30% of EU hard coal consumption.
Russian coal would be easier to replace than Russian gas because coal arrives by ship and there are multiple global suppliers.
The German Coal Importers Association said in March that Russian coal could be replaced “within a few months”.
Analysts at the Bruegel think tank said in March that Germany and Poland were particularly dependent on Russian coal for power generation and that “Russian coal can be replaced because global markets are well supplied and flexible.”
But they added that “substituting Russian coal imports will require the rapid deployment of new supply chains to bring the right kind of coal to where it is needed.”
Most European coal users already source from different suppliers and should be able to build on existing relationships.
But the change would mean greater import demand from Europe and higher global coal prices, with significant effects on emerging and developed economies that also rely on coal.