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Significance

Central-Eastern European (CEE) states that dragged their feet on diversifying energy sources will suffer financial consequences of the cut-off. The continued reliance on Russian oil and nuclear fuel leaves the region vulnerable to further volatility.

Impacts

Scrapping exemptions and introducing new sanctions could ramp up pressure on CEE to phase out remaining energy links to Moscow.

The EU may consider lowering the price cap on Russian oil from USD60 to USD40 per barrel.

Bratislava’s threat of cutting off electricity supplies to Ukraine is unlikely to cause major issues for Kyiv.

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