Crypto News: Approaching the limits

After weeks of deadlock, European Union leaders finally agreed to shut off the flow of most of the oil they buy from Russia.

It may be about as far as they can go to punish Moscow for attacking Ukraine.

While the technical details must still be hashed out, the deal forbids the purchase of crude and oil products Russia delivers to EU states by sea.

Key reading:

The measures will halt more than two-thirds of crude bought by the EU, while additional pledges by Germany and Poland to stop purchasing pipeline oil will bring the total to about 90%. It's the headline achievement of a sixth sanctions package that also targets additional Russian banks.

As with most EU decisions, it was a compromise among the bloc's 27 states. It only succeeded after Viktor Orban chiseled out an exemption for Hungary, while others also got some leeway.

It aims to hit President Vladimir Putin's ability to fund the war, forcing the Kremlin to sell fuel elsewhere — and at a discount.

But it will also hurt EU nations.

Belgian Prime Minister Alexander De Croo signaled it was "the provisional end point" of what he could agree to in the energy sphere. That suggests a bloc-wide agreement to halt natural-gas imports remains far off.

In the US, President Joe Biden appeared to reach a limit to the military assistance he is prepared to provide Ukraine, ruling out sending long-range rocket systems that could strike targets in Russia.

No doubt, while hard to achieve, the EU agreement is significant. But it's far from a knockout blow.

The immediate effect was to send oil prices higher, meaning every barrel the Kremlin sells brings more to its war chest. — Michael Winfrey

A drilling rig on a oil, gas and condensate field in the Lensk district of the Sakha Republic, Russia. Photographer: Andrey Rudakov/Bloomberg

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Bloomberg TV and Radio air Balance of Power with David Westin weekdays from 12 to 1 p.m. ET, with a second hour on Bloomberg Radio from 1 to 2 p.m. ET. You can watch and listen on Bloomberg channels and online here or check out prior episodes and guest clips here.

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