The European Commission on Oct. 6 adopted an eighth round of sanctions against Russia, including the introduction of a price cap on seaborne Russian oil. They did this despite the fact that the first seven rounds, while admittedly causing important difficulties for Russia, have totally devastated Europe’s physical economy by removing its only secure supply of energy. Here is a snapshot of some of the other fallout:
Perhaps the bluntest criticism came from Luxembourg’s Prime Minister Xavier Bettel, who stated at an EU meeting in Prague the next day: “Implementing a price cap is not the only thing. Because, after, maybe we can’t get energy. So then, maybe we have a price cap but no energy…. We have to know we’re not the only customers in the world,” he observed. “So, we have to be very careful about decisions that we take that sound good on paper but where consequences can be problematic.”
Belgium, for its part, refused to back the latest round of sanctions by abstaining from the vote. Prime Minister Alexander De Croo told reporters that “as the economic cost of sanctions becomes higher, it becomes difficult to show solidarity” to support Ukraine. “The sanctions have worked very well so far,” he lied, “but the further we go, the more we talk about sanctions that hurt our own economy more than Russia’s.”
Poland is increasingly turning to burning garbage as a major source of energy, after citizens were given a green light to do so by authorities. Prior to the suicidal sanctions, Poland imported 46% of its gas from Russia, 64% of its oil, and 15% of its coal.
Serbian Prime Minister Ana Brnabic stated that a ban on seaborne oil supplies from Russia and pumping through Croatia would increase Serbia’s raw-material costs by 20%. Instead Serbia announced that it plans to build a new pipeline through Hungary in order to be able to connect to Russia’s Druzhba oil pipeline.
The British National Grid ESO warned on Dec. 6 that Brits are likely to suffer blackouts this winter, given the self-inflicted shortage of natural gas.
