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Why the Druzhba pipeline was spared from the EU ban on Russian oil

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Why the Druzhba pipeline was spared from the EU ban on Russian oil

With the warfare in Ukraine getting into its fourth month endlessly, the European Union has taken its sanctions in opposition to Russia into uncharted territory.

In a daring transfer poised to reverberate throughout international markets, the 27 member states have agreed to part out Russian oil, each crude barrels and refined oil merchandise, by the top of the yr.

The breakthrough adopted virtually 4 weeks of fraught negotiations that culminated in a high-stakes extraordinary summit in Brussels, the place leaders gave in to a key demand vigorously advocated by Hungary: the overall exemption of oil provides flowing by pipelines.

Accordingly, the EU-wide ban will goal seaborne imports, which signify greater than two-thirds of the bloc’s every day purchases of Russian oil.

The pipeline derogation went additional than an preliminary compromise that instructed Hungary, along with different landlocked international locations, could be allowed two additional years, till December 2024, to finish the embargo.

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Because it stands now, the exemption, touted as “short-term”, will stay in place for an indefinite time frame.

The deal presents an incontestable political victory for Hungary’s Prime Minister Viktor Orbán, who doggedly stood his floor and blocked the measure till all his calls for had been glad. 

“Hungarian households can sleep peacefully tonight,” declared Orbán on the finish of the assembly.

“Brussels’ proposal would have been just like an atomic bomb, however we managed to keep away from it.”

A long-lasting Soviet legacy

On the coronary heart of the dispute is the Druzhba pipeline, an enormous conduit courting again to the Soviet period and at present operated by Russia’s state-controlled large Transneft.

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The pipeline, whose identify interprets to “friendship”, started development within the early Nineteen Sixties and in the present day stretches over a 5,500-kilometre-long community, pouring Urals oil immediately into refineries in Poland, Germany, Hungary, Slovakia and the Czech Republic.

Druzhba pumps between 750,000 to 800,000 barrels of crude on a every day foundation and has a capability of as much as 1.4 million every day barrels. The gasoline is then refined by EU firms into diesel, naphtha, gasoline, lubricants and different commodities which might be offered in and out of doors the bloc.

These huge and constant volumes have turned the pipeline right into a centrepiece of Central Europe’s vitality sector, constructing a complete ecosystem that sustains 1000’s of direct and oblique jobs however on the identical time, it is created a excessive diploma of dependency on Russia.

As quickly as European Fee President Ursula von der Leyen proposed phasing out each seaborne and pipeline oil imports, the cracks started displaying.

Hungary, the Czech Republic and Slovakia, three international locations that lack entry to sea and are closely reliant on Russian oil, shortly raised considerations and requested for tailored deadlines, starting from two to 4 additional years, to revamp their vitality methods.

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The Slovak authorities argued the nation’s solely refinery, Slovnaft, labored completely with a heavy sort of Russian oil and that repurposing the know-how to a lighter crude would take up half a decade and require €250 million in funding.

Utilizing comparable arguments, Budapest placed on the desk a requirement for €550 million to adapt its refineries, whereas Prague stated it wanted till June 2024 to develop the capability of the Transalpine pipeline, which allows the transport of non-Russian oil from the marine terminal in Trieste, Italy.

The behind-the-scenes discussions intensified to carry all 27 states on board: talks concerned complicated technical questions – learn how to discover different suppliers and commerce routes –, financial fears of an inevitable recession and political nervousness over the affect on the voters’s every day life.

Altogether, the dilemma briefly threatened to derail the EU’s enduring unity all through the continent’s gravest disaster within the twenty first century.

In the long run, EU leaders, cautious of an infinite deadlock and fearing reputational injury, selected to compromise and pushed the sixth bundle of sanctions over the end line.

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Whereas the ultimate consequence has been punctured by a seemingly limitless exemption, the scope of the oil embargo is nonetheless spectacular for the energy-thirsty bloc: the EU is Russia’s primary oil consumer, with a pre-war commerce of round 3.5 million barrels per day value €74 billion in 2021.

Hovering vitality costs made the necessity for a boycott an crucial for the EU: due to the worthwhile sale of fossil fuels, the Kremlin has managed to enhance the rouble and register a €90 billion account surplus.

“The embargo continues to be a massively optimistic step for Europe and exhibits that the EU is severe about sanctioning Putin over the atrocities being dedicated in Ukraine,” stated Anna Krajinska, oil marketing campaign coordinator at Transport & Setting, an organisation that advocates for zero-emission mobility.

Degree taking part in subject

Hungarian, Slovak and Czech officers have overtly celebrated the deal, expressing their satisfaction with how their concerns had been taken under consideration.

In the meantime, Poland and Germany, that are linked to Druzhba’s northern department, have pledged to transcend authorized obligations and part out pipeline imports on high of seaborne provides.

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If the 2 make good on their (non-binding) guarantees, the EU will finish 2022 with out 90% of the Russian oil it at present buys, in line with the Fee’s personal estimates.

However the destiny of that remaining 10% flowing by the southern department continues to be up within the air. 

The Dutch and Belgian prime ministers acknowledged Hungary’s troublesome place however instructed the exemption must be revised within the coming months to slim down its period. Given Budapest’s insistence, it appears unlikely the federal government will likely be keen to open up the dialogue, not to mention amend the compromise.

The pipeline carve-out has already raised the spectre of unfair competitors: in follow, a small group of states will be capable of obtain dependable oil provides whereas the bulk battle to pay money for barrels from different suppliers.

“International locations will take pleasure in a aggressive benefit and that could be a threat that must be thought-about for the integrity of the only market,” Ben McWilliams, a analysis analyst at Bruegel, instructed Euronews.

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“It’s not but clear to what extent Hungary and others will be capable of refine Russian crude oil and promote it into secondary markets – however this have to be restricted and intently monitored.”

The EU summit’s joint conclusions embody a vaguely-worded vow to make sure a “stage taking part in subject” between member states. However Brussels is not going to get to see the total image till the embargo is accomplished in late December.

The truth that Russia is providing Urals crude with an eye catching $35 low cost beneath the benchmark Brent is about to make issues extra awkward for the bloc, notably if non-Russian suppliers capitalise on the embargo to hike costs and expand earnings.

In one other notable win, Orbán secured a provision saying that “in case of sudden interruptions of provide, emergency measures will likely be launched to make sure safety of provide,” a line he pushed after a Ukrainian official ominously warned that “one thing might occur” to the Druzhba phase working by the nation.

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‘Alex Cross’ TV Show: Get Season 1 Release Date, Watch Trailer



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Reformist candidate Masoud Pezeshkian wins Iran's presidential runoff election

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Reformist candidate Masoud Pezeshkian wins Iran's presidential runoff election

Reformist candidate Masoud Pezeshkian won Iran’s runoff presidential election Saturday, besting hardliner Saeed Jalili by promising to reach out to the West and ease enforcement on the country’s mandatory headscarf law after years of sanctions and protests squeezing the Islamic Republic.

Pezeshkian promised no radical changes to Iran’s Shiite theocracy in his campaign and has long held Supreme Leader Ayatollah Ali Khamenei as the final arbiter of all matters of state in the country. But even Pezeshkian’s modest aims will be challenged by an Iranian government still largely held by hardliners, the ongoing Israel-Hamas war in the Gaza Strip, and Western fears over Tehran enriching uranium to near-weapons-grade levels with enough of a stockpile to produce several nuclear weapons if it chose.

IRAN’S SUPREME LEADER THANKS US COLLEGE STUDENTS FOR ‘STANDING ON THE RIGHT SIDE OF HISTORY’

A vote count offered by authorities put Pezeshkian as the winner with 16.3 million votes to Jalili’s 13.5 million in Friday’s election. Overall, Iran’s Interior Ministry said 30 million people voted in an election held without internationally recognized monitors, representing a turnout of 49.6% — higher than the historic low of the June 28 first round vote but lower than other presidential races.

Reformist candidate for Iran’s presidential election Masoud Pezeshkian, center, reacts after casting his vote as he is accompanied by former Foreign Minister Mohammad Javad Zarif, left, at a polling station in Shahr-e-Qods near Tehran, Iran, Friday. (AP Photo/Vahid Salemi)

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Supporters of Pezeshkian, a heart surgeon and longtime lawmaker, entered the streets of Tehran and other cities before dawn to celebrate as his lead grew over Jalili, a hard-line former nuclear negotiator. Pezeshkian later traveled to the mausoleum of the late Grand Ayatollah Ruhollah Khomeini, the leader of the 1979 Islamic Revolution, and addressed journalists in a chaotic event.

“In this election, I didn’t give you false promises. I did not lie,” Pezeshkian said. “It’s been many years after the revolution that we come to the podium, we make promises and we fail to fulfill them. This is the biggest problem we have.”

Pezeshkian’s win still sees Iran at a delicate moment, with tensions high in the Mideast and a looming election in the United States that could put any chance of a detente between Tehran and Washington at risk. Pezeshkian’s victory also wasn’t a rout of Jalili, meaning he’ll have to carefully navigate Iran’s internal politics as the doctor has never held a sensitive, high-level security post.

Government officials up to Khameni, the supreme leader, predicted higher turnout as voting got underway, with state television airing images of modest lines at some polling centers. However, online videos purported to show some polls empty while a survey of several dozen sites in Tehran saw light traffic and a heavy security presence on the streets.

Authorities counted 607,575 voided votes — which often are a sign of protest by those who feel obligated to cast a ballot but reject both candidates.

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Khamenei praised the turnout Saturday despite what he alleged was a boycott campaign “orchestrated by the enemies of the Iranian nation to induce despair and a feeling of hopelessness.”

Voters in line

Iranian people stand in a queue as they wait to vote at a polling station in Tehran during a snap presidential election to choose a successor to Ebrahim Raisi following his death in a helicopter crash. (Majid Asgaripour/WANA (West Asia News Agency) via Reuters)

“I would like to recommend Dr. Pezeshkian, the elected president, put his trust in God, the Compassionate, and set his vision on high, bright horizons,” Khamenei added.

Voters expressed a guarded optimism.

“I don’t expect anything from him — I am happy that the vote put the brake on hard-liners,” said bank employee Fatemeh Babaei, who voted for Pezeshkian. “I hope Pezeshkian can return administration to a way in which all people can feel there is a tomorrow.”

Taher Khalili, a Kurdish-origin Iranian who runs a small tailor shop in Tehran, offered another reason to be hopeful while handing out candy to passersby.

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“In the end, someone from my hometown and the west of Iran came to power,” Khalili said. “I hope he will make economy better for small businesses.”

Pezeshkian, who speaks Azeri, Farsi and Kurdish, campaigned on outreach to Iran’s many ethnicities. He represents the first president from western Iran in decades — something people hope will aid the county as those in the western part are considered more tolerant because of the ethnic and religious diversity in their area.

The election came amid heightened regional tensions. In April, Iran launched its first-ever direct attack on Israel over the war in Gaza, while militia groups armed by Tehran — such as the Lebanese Hezbollah and Yemen’s Houthi rebels — are engaged in the fighting and have escalated their attacks.

While Khamenei remains the final decision-maker on matters of state, Pezeshkian could bend the country’s foreign policy toward either confrontation or collaboration with the West.

Crown Prince Mohammed bin Salman of Saudi Arabia, which has reached a detente with Iran, sent his congratulations to Pezeshkian that stressed his “keenness to develop and deepen the relations that bring our two countries and peoples together.” Russian President Vladimir Putin, who has relied on Iranian-made drones in his war on Ukraine, similarly congratulated Pezeshkian.

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Responding to questions from The Associated Press, the State Department called the Iranian election “not free or fair” and noted that “a significant number of Iranians chose not to participate at all.”

“We have no expectation these elections will lead to fundamental change in Iran’s direction or more respect for the human rights of its citizens,” the State Department added. “As the candidates themselves have said, Iranian policy is set by the supreme leader.”

However, it said it would pursue diplomacy “when it advances American interests.”

Candidates repeatedly touched on what would happen if former President Donald Trump, who unilaterally withdrew America from the Iran nuclear deal in 2018, won the November election. Iran has held indirect talks with President Joe Biden’s administration, though there’s been no clear movement back toward constraining Tehran’s nuclear program for the lifting of economic sanctions.

Pezeshkian’s win did see Iran’s rial strengthen Saturday against the U.S. dollar, trading 603,000 to $1, down from 615,000 on Thursday. The rial traded 32,000 to $1 at the time the 2015 nuclear deal was reached.

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Though identifying with reformists and relative moderates within Iran’s theocracy during the campaign, Pezeshkian at the same time honored Iran’s paramilitary Revolutionary Guard, on one occasion wearing its uniform to parliament. He repeatedly criticized the United States and praised the Guard for shooting down an American drone in 2019, saying it “delivered a strong punch in the mouth of the Americans and proved to them that our country will not surrender.”

The late President Ebrahim Raisi, whose death in a May helicopter crash sparked the early election, was seen as a protégé of Khamenei and a potential successor as supreme leader.

Still, many knew him for his involvement in the mass executions that Iran conducted in 1988, and for his role in the bloody crackdowns on dissent that followed protests over the 2022 death of Mahsa Amini, a young woman detained by police over allegedly improperly wearing the mandatory headscarf, or hijab.

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Niger, Mali and Burkina Faso military leaders sign new pact, rebuff ECOWAS

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Niger, Mali and Burkina Faso military leaders sign new pact, rebuff ECOWAS

The military leaders of Burkina Faso, Mali and Niger have hailed a newly signed treaty as a step “towards greater integration” between the three countries, in the latest showing of their shift away from traditional regional and Western allies.

During a summit in the Nigerien capital of Niamey on Saturday, the three leaders signed a confederation treaty that aims to strengthen a mutual defence pact announced last year, the Alliance of Sahel States (AES).

The signing capped the first joint summit of the leaders – Niger’s General Abdourahmane Tchiani, Burkina Faso’s Captain Ibrahim Traore, and Mali’s Colonel Assimi Goita – since they came to power in successive coups in their bordering West African nations.

It also came just months after the three countries withdrew from the Economic Community of West African States (ECOWAS) regional bloc in January.

Speaking at the summit on Saturday, Tchiani called the 50-year-old ECOWAS “a threat to our states”.

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The West African economic bloc had suspended the three countries after their respective military takeovers, which occurred in July 2023 in Niger, September 2022 in Burkina Faso and August 2021 in Mali.

ECOWAS also imposed sanctions on Niger and Mali, but the bloc’s leaders have held out hope for the trio’s eventual return.

“We are going to create an AES of the peoples, instead of an ECOWAS whose directives and instructions are dictated to it by powers that are foreign to Africa,” Tchiani said.

Burkina Faso’s Traore also accused foreign powers of seeking to exploit the countries. The three nations have regularly accused former colonial ruler France of meddling in ECOWAS.

“Westerners consider that we belong to them and our wealth also belongs to them. They think that they are the ones who must continue to tell us what is good for our states,” he said.

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“This era is gone forever. Our resources will remain for us and our population’s.”

For his part, Mali’s Goita said the strengthened relationship means an “attack on one of us will be an attack on all the other members”.

Shifting influence

Reporting from Abuja on Saturday, Al Jazeera’s Ahmed Idris noted that the three military leaders met just a day before ECOWAS was set to have a meeting in the capital of Nigeria.

Efforts to mediate the countries’ return to the bloc were expected to be discussed, Idris said.

“Many people believe that the meeting in Niger was to counter whatever is coming [from] ECOWAS and to also outline their position: That they are not returning to the Economic Community of the West African States,” he explained.

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Idris added the newly elected president of Senegal, Bassirou Diomaye Faye, recently visited the three countries in an informal capacity in an effort to mend the ties.

“However, it’s not clear whether or not he’s got a positive response,” he said.

Adama Gaye, a political commentator and former ECOWAS communications director, said the creation of the three-member Alliance of Sahel States has “weakened” the economic bloc.

Still, Gaye told Al Jazeera that “despite its real-name recognition, ECOWAS has not performed well when it comes to achieving regional integration, promoting intra-African trade in West Africa and also in ensuring security” in the region.

“So this justifies the feeling of many in West Africa – [the] ordinary citizenry and even intellectuals – [who are] asking questions about the standing of ECOWAS, whether it should be revised, reinvented,” he said, urging the bloc to engage in diplomacy to try to bridge the rift.

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Violence and instability

The Niamey summit also came a day before the United States is set to complete its withdrawal from a key base in Niger, underscoring how the new military leaders have redrawn security relations that had defined the region in recent years.

Armed groups linked to al-Qaeda and ISIL (ISIS) have jockeyed for control of territory in all three countries, unleashing waves of violence and spurring concern in Western capitals.

But following the recent coups, the countries’ ties to Western governments have frayed.

French troops completed their withdrawal from Mali in 2022, and they left Niger and Burkina Faso last year.

Meanwhile, US Air Force Major General Kenneth Ekman said earlier this week that about 1,000 military personnel would complete their withdrawal from Niger’s Air Base 101 by Sunday.

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The US is also in the process of leaving a separate, $100m drone base near Agadez in central Niger, which officials have described as essential to gathering intelligence about armed groups in the region.

While pushing out former Western allies, the military leaders in Burkina Faso, Niger and Mali have increasingly pursued security and economic ties with Russia.

However, it remains unclear if the new approach has helped to stem the violence that has plagued the countries, which are home to about 72 million people.

In 2023, Burkina Faso saw a massive escalation in violence, with more than 8,000 people killed, according to the Armed Conflict Location and Event Data Project (ACLED) tracker.

In Niger, slight gains against armed groups largely backslid following the coup, according to ACLED.

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Meanwhile, an offensive by Malian forces and Wagner mercenaries saw “elements” of the Russian-government-linked group “involved in the indiscriminate killing of hundreds of civilians, destruction of infrastructure, and looting of property, as well as triggering mass displacement”, ACLED said.

About three million people have been displaced by fighting across the countries.

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