'Don't mention the war'
Time is running out to save next week's EU summit and a sixth sanctions package.
➤ 1 ➤ This BBC preview captures the mood in Brussels. One face-saving option being floated again is to ban only oil imports by ship, leaving pipeline supply to be included later or not at all.
➤ 2 ➤ In his invitation letter EUCO president Charles Michel does not specifically mention sanctions, only to say “building on our decisions taken in Versailles, we will discuss the best ways to take work forward.”
The summit will also consider the wider package of energy measures put forward by the Commission last week, including increased renewable energy and energy efficiency targets.
➤ 3 ➤ If things don’t work out in Brussels then “something could happen” to oil supplies to Hungary via Ukraine, according to one frustrated official in Kyiv.
This suggestion did not go down well in Budapest.
But led to some fun elsewhere.
➤ 4 ➤ Nevertheless, in anticipation of an oil embargo of some kind, insurance cover for ships carrying Russian cargoes is already being partially withdrawn.
➤ 5 ➤ Hungary is to store gas for Serbia. The deal covers 0.5 bcm and represents around 9 percent of Hungary’s capacity. Europe’s overall gas in store is now at 45% of capacity and well ahead of schedule to meet the autumn target.
➤ 6 ➤ In China high prices and pandemic restrictions could squeeze its import demand by up to a fifth this year, creating some breathing space for European buyers.
Thanks for reading. That’s all for today. // Mark