Putin predicts EU states will buy his crude ‘for a long time’
VLADIMIR PUTIN has claimed that some EU countries will be unable to wean themselves off Russian oil “for a long time”.
Brussels has put forward plans to ban imports of Russian oil but talks have collapsed due to opposition from Hungary, which is heavily reliant on Moscow.
Speaking at a televised meeting about Russia’s energy sector, Mr Putin said: “Obviously, some EU states, in whose energy balance the share of Russian hydrocarbons is especially high, will not be able to do this for a long time, to ditch our oil.” He added that the West’s decision to cut off Russia, as well as sanctions imposed after the invasion of Ukraine, meant Europe risked paying higher prices for energy in the long run.
The Russian president also said the sanctions had stoked inflation more broadly across Europe.
Russia is facing a collapse in oil production as a result of sanctions, which have complicated its efforts to sell crude globally. Mr Putin admitted there had been “tectonic changes” in the market and that continuing to do business “in line with the old model looks unlikely”.
He has promised help to domestic oil producers, including facilitating access to loans and insurance after Western companies cut ties.
It came as Hungary told the EU it will cost at least €770m (£650m) to overhaul the country’s energy system as it continues to wrangle over the proposed ban.
The Eastern European country, led by populist leader Viktor Orbán , said it would need €550m to revamp its refineries to comply with the ban and another €220m for a pipeline from Croatia.
It warned it may also need additional funds to cope with a potential surge in oil prices if the ban on Russian imports is confirmed, Bloomberg reported.
Hungary is also said to have demanded that any sanctions focus on seaborne shipments of oil, rather than pipelines.
Mr Orbán, who has close ties to Putin, has faced criticism from within the EU for his refusal to back the ban, with Lithuania’s foreign affairs minister accusing the country of holding the bloc “hostage”.
The EU is expected to announce new investments to appease countries most reliant on Russian energy and secure an agreement. It has already offered Hungary, Slovakia and the Czech Republic an extension on the deadline for phasing out Russian oil.