European Union drops plan to label oilsands crude 'dirty'

The European Union has backed off a plan to label oil from Alberta's oilsands as dirtier than other oils and to make it harder to import.​

The European Commission, the EU's executive arm, published a proposal early Tuesday that removes one of the biggest hurdles that was standing in the way of Canada exporting its oil directly to Europe, something that isn't currently happening in any significant way.

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The move comes at a time when tensions are rising between Europe and its top oil supplier, Russia.

EU sources, speaking on condition of anonymity, said the desire for a trade deal with Canada had been a factor given the situation with Moscow.