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EU capitals clash over Russia sanctions post-Orbán

Created at 22 Jul · 2:26 AM1 source↑ Market-relevant
IN SHORT

EU ambassadors are struggling to finalize a new sanctions package against Russia, with member states like Greece, Austria, Bulgaria, France, and Italy pushing back against measures impacting their national economic interests, a stark contrast to the previous era of Hungarian obstruction.

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Key Numbers

21stsanctions package against Russia
$44.10per-barrel price cap on Russian oil
six-monthextension of the oil price cap
€2.44 billionexpropriation of Raiffeisen Bank's assets in Russia
half a billion dollarsannual earnings from Russian fish sales to the EU
2023year of largest addition to EU travel bans
250people to be banned from traveling to the EU

Who's Involved

Ursula von der Leyen
European Commission President who presented the sanctions package
Péter Magyar
Current leader of Hungary
Viktor Orbán
Former Hungarian leader who previously blocked sanctions
Ville Niinistö
Finnish MEP and chair of the European Parliament’s Russia delegation
Patriarch Kirill
Head of the Russian Orthodox Church, proposed for sanctions
EU capitals clash over Russia sanctions post-Orbán

↳ Why This Matters

The struggle to pass new sanctions against Russia, even after Hungary's previous obstruction ended, reveals deep divisions within the EU regarding economic interests versus solidarity with Ukraine, potentially weakening the bloc's unified stance against Moscow.

Key facts

  • EU ambassadors are pushing to finalize the 21st package of sanctions against Russia.
  • Key measures have been weakened or removed to protect national economic interests.
  • Greece is blocking a ban on shipping Russian liquefied natural gas (LNG) due to its large merchant fleet.
  • Austria raised concerns about Raiffeisen Bank's assets in Russia.
  • Proposed sanctions against Patriarch Kirill and restrictions on former Russian soldiers were significantly diluted.
  • The package is still expected to cut off more Russian banks from SWIFT and ban over 250 individuals from traveling to the EU.

EU ambassadors are facing a significant challenge in finalizing the bloc's 21st sanctions package against Russia, a process complicated by the removal of Hungary's former obstructionist stance under Viktor Orbán. Without Budapest's cover, other member states are now openly defending their national interests, leading to the weakening or outright removal of several key measures. Greece has stalled the package over a proposed ban on shipping Russian liquefied natural gas (LNG) to third countries, citing concerns for its vast merchant fleet. Austria has also intervened on behalf of Raiffeisen Bank regarding its assets in Russia. Proposed bans on Russian fish imports and sanctions against Patriarch Kirill, the head of the Russian Orthodox Church, were also dropped or significantly diluted due to objections from countries like Bulgaria and Italy, with the Vatican reportedly opposing targeting the head of another church. France and Italy also pushed back against restrictions on former Russian soldiers, arguing the implementation system was not ready. Despite these concessions, the package is still expected to include measures such as cutting off more Russian banks from the SWIFT messaging system and imposing travel bans on over 250 individuals. The difficulties encountered highlight the increasing challenge of finding unanimous agreement among EU nations as the bloc runs out of easier targets and confronts powerful national economic interests.

Frequently asked questions

Member states are protecting their own economic interests, such as shipping, energy, and banking, which are impacted by the proposed measures. Without Hungary's previous obstruction, these countries are now forced to voice their objections openly.

Proposed bans on shipping Russian LNG, sanctions against Patriarch Kirill, restrictions on former Russian soldiers, and a phase-out of Russian fish imports have been significantly diluted or removed.

Orbán's close ties to the Kremlin and repeated threats to block sanctions provided other capitals with cover to resist tougher actions, allowing them to avoid openly defending their own objections.

The package is anticipated to cut off more Russian banks from the SWIFT messaging system and impose travel bans on over 250 individuals.

What Happens Next

01EU ambassadors will make another push to finalize the sanctions package.
02Further concessions may be required to achieve unanimous backing.

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Cadence

How It Developed

EU ambassadors are attempting to finalize the bloc's 21st Russia sanctions package.
Several measures have been weakened or dropped due to national interests.
Greece is blocking a ban on EU companies shipping Russian LNG.
Austria intervened on behalf of Raiffeisen Bank regarding its assets in Russia.
A proposed phase-out of Russian fish imports was removed.
Sanctions against Patriarch Kirill and restrictions on former Russian soldiers were watered down or removed.
The package is expected to include more Russian banks cut off from SWIFT and travel bans for over 250 individuals.

Sources

T1
Post-Orbán sanctions showdown exposes EU capitals’ red linesPOLITICO Europe

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