EXPLAINER: Effects of EU Russia oil ban, Moscow's response

THE HAGUE, Netherlands (AP) — The European Union has agreed to slash Russian oil imports in a tough escalation of the bloc's campaign of sanctions to punish Moscow for its invasion of Ukraine. It's a landmark decision that will hit Russian coffers in the long term, but could also hurt consumers across the European continent.

The move agreed late Monday at an EU leaders' summit in Brussels comes amid soaring energy prices in Europe and could spark more rises, particularly later this year as nations compete for natural gas supplies to heat homes and fire industries, analysts say.

Just hours before U.S. markets opened Wednesday, benchmark U.S. crude had climbed $1.25 to $115.92 per barrel in electronic trading on the New York Mercantile Exchange.

Analysts say that amid high oil prices, the sanctions are unlikely to hit Russia hard soon, but they deprive Moscow of one of its most important customers for oil — likely for a long time to come.

WHAT HAS THE EU DONE?

European Union leaders agreed to cut Russian oil imports by about 90% over the next six months, a dramatic move that was considered unthinkable just months ago. The 27-country bloc relies on Russia for 25% of its oil.

The ban applies to all Russian oil delivered by sea. It contains a temporary exemption for oil delivered by the Russian Druzhba pipeline to certain landlocked countries in Central Europe. Germany and Poland have agreed to stop using oil from the northern branch of the pipeline.

Russian oil delivered by sea accounts for two-thirds of the EU’s oil imports from Moscow.

WHAT ABOUT GAS?

Russia has the world’s largest natural gas reserves and is the biggest global exporter, according to the International Energy Agency.

But don't expect the 27-nation bloc's leaders to sign off on a ban on Russian gas...