OPEC warns EU against sanctions on Russian oil

OPEC officials have warned European Union lawmakers in Brussels that a ban on Russian oil would hurt consumers and urged Moscow and the West to work towards a diplomatic solution to the looming energy crisis.

According to Reuters, major OPEC members, such as Saudi Arabia and the United Arab Emirates, have attempted to navigate a path of neutrality since Russian President Vladimir Putin ordered the invasion of Ukraine one month ago -- while OPEC+, whose members include Russia, Iran and Venezuela, have fully avoided discussing the war during policy meetings.

Although the EU has already imposed unprecedented economic sanctions on Russia, the bloc has been discussing the plausibility of sanctioning Russia’s energy industry – upon which Europe heavily relies for affordable energy. But as prices continue to rise across the world, Gulf producers have ignored calls to tap into their spare oil output supplies, prompting Western leaders to call upon OPEC to increase oil production and avoid profiting from global sanctions against Russia.  

"I'm not asking that they join the sanctions ... but I ask not to be a profiteer of European and U.S. sanctions," German Economy Minister Robert told reporters while on an official visit to Abu Dhabi on Monday.

OPEC Secretary General Mohammad Barkindo met EU Energy Commissioner Kadri Simson on March 16 to discuss the “extraordinary times” being experienced across the energy market and OPEC sources have since said that the group’s concerns were made clear to the EU.

“They are very well informed,” the unnamed source reportedly said.

EU officials acknowledged the talks between the two parties and noted, “OPEC presented their analysis of the oil market situation and informed us of their plans in terms of oil production.”

"As we have consistently said, nothing is off the table in terms of future sanctions," he added.

Energy prices have skyrocketed to their highest levels since 2008 since Russia invaded Ukraine as supply concerns continue to push consumer fuel prices up. Although the United States and Britain have already targeted Russian oil in their sanctions, the EU – which imports 40% of its oil supply from Russia – has been unwilling to fully commit to the new sanctions.

An OPEC source warned, however, that stopping short of banning Russian oil would signal that EU members are “persuaded by their energy realities not their wishes.”