Geoffrey Smith 

Investing.com — The European Union is willing to exempt some central European member states from its proposed embargo on Russian oil, hoping that the concessions will ensure the unanimity that is needed for the sanctions to come into force.

However, concessions made are still far short of the demands of Hungary.

Bloomberg quotes officials who claim that the EU will allow Hungary and Slovakia, as well as Czechia to continue imports of Russian oil and products through 2024.

It would allow for a two-year exclusion from all measures proposed earlier by President Ursula von der Leyen of European Commission. The latter aims to impose a total embargo on the year’s end.

Due to the Soviet Union’s network of pipelines, the landlocked countries of eastern and central Europe are less dependent on Russia than other EU members. The Baltic States and Poland, on the other hand, have had greater access to different sources of supply since they joined the EU.

Reuters reported that a week earlier, Bulgaria in Southeast Europe had also requested an exemption if the same was extended to other countries.

Although the EU’s sixth sanctions package for Russia would align it with the U.S., U.K. by imposing a complete ban on Russian liquid fuels the EU can only be put into effect with unanimous support. Hungarian Prime Minister Viktor Orban, who has been the most active supporter of Russia among EU leaders since it invaded Ukraine in February, has said the package would be like “dropping a nuclear bomb” on his country’s economy. He’s pressing for a five-year exemption, according to various reports.

The EU’s move has kept oil prices firmly supported this week, even while other risk assets have been pummeled by fears of sharp rises in interest rates and slowing growth. Futures had risen 0.9% to $109.23 per barrel by 4:30 AM ET (830 GMT) while they were 1.0% higher at $111.97.