- EU diplomats expect to finalize the 18th sanctions package against Russia during this week’s summit.
- Hungary and Slovakia demand concessions on Russian energy to back the deal.
- Proposed measures target Russian banks and their shadow tanker fleet.
- Disagreements center on a proposed ban on Russian energy imports by 2027.
European Union diplomats are closing in on an agreement over an 18th package of sanctions against Russia, aimed at curbing energy revenues and pressuring Moscow to negotiate a ceasefire with Ukraine. However, the approval hinges on opposition from Hungary and Slovakia, which are leveraging the talks to seek exemptions from the proposed Russian energy import ban by 2027, according to Reuters.
The sanctions package, proposed by the European Commission, would include measures against Russian financial institutions and the country’s shadow fleet of oil tankers. The goal is to reinforce the EU’s stance, following May’s call by leaders for “massive sanctions” against Russia.
Energy Disputes Stall Progress
Hungary and Slovakia are demanding amendments to the plan. Both countries, heavily reliant on Russian pipeline gas, argue that cutting off these supplies could severely impact Central European economies.
Slovakia’s Prime Minister Robert Fico has called for the vote to be delayed until concerns about the energy ban are fully addressed, warning that Slovakia is prepared to block the deal. Slovakia is also requesting mechanisms to cap EU transit fees and guarantees in the event of gas shortages.
Economy Minister Denisa Sakova echoed these concerns last week, emphasizing the risks of energy price spikes. Slovak gas company SPP also raised the alarm, warning that its long-term contract with Gazprom (valued at €16 billion until 2034) could trigger compensation demands if imports are banned.
Diplomatic Dynamics
According to EU diplomats, Hungary is expected to align with Slovakia’s position. “If Slovakia lets it go, so will Hungary,” said one diplomat. The two nations seek special treatment as landlocked countries and greater energy security assurances.
Legal Uncertainty
Legal experts caution that the Commission’s plan to use trade instruments for the energy ban—rather than formal sanctions—could expose the EU to legal claims, since trade measures don’t require unanimous approval and may lack the same legal protections.
Looking Ahead
EU leaders will meet on Thursday and Friday in Brussels for a crucial European Council summit to resolve the standoff. While Polish EU Minister Ignacy Niemczycki remains optimistic, the success of the sanctions package may ultimately depend on whether Slovakia’s demands are met.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Reuters
