Key facts
- The EU has approved a new sanctions package against Russia.
- Greece secured an exemption allowing continued transport of Russian LNG to non-EU markets.
- Bulgaria successfully lobbied for the removal of Patriarch Kirill and Vagit Alekperov from the blacklist.
- Restrictions on Russian cod and pollock, and on Russian soldiers' Schengen access, were weakened or removed.
- Austria's request to consider lifting sanctions on Rasperia was agreed upon for later consideration.
The European Union has reached an agreement on a new package of sanctions against Russia, intended to undermine the economic foundations supporting Moscow's war in Ukraine. European Commission President Ursula von der Leyen stated that the sanctions continue to weaken Russia's war effort by cutting off financial lifelines.
However, the negotiations leading to this agreement exposed significant divisions among member states, raising questions about their willingness to endure economic pain for the sake of pressuring the Kremlin. Greece, home to the world's largest merchant fleet, used its veto power to prevent a complete ban on Russian liquefied natural gas (LNG) exports, securing an exemption for shipping services outside the EU market beyond January 1, 2027. This move was reportedly influenced by commercial interests, with the Greek government and the shipping company Dynagas lobbying for the exemption.
Other member states also asserted their national interests. Bulgaria, under Prime Minister Rumen Radev, threatened to veto the entire package unless Patriarch Kirill, head of the Russian Orthodox Church, and Lukoil founder Vagit Alekperov were removed from the proposed blacklist, which eventually happened. Portugal and Germany successfully pushed for the removal of restrictions on Russian cod and pollock due to concerns about their domestic industries. France and Italy watered down a proposal to restrict Russian soldiers' access to the Schengen Area. Austria secured a commitment to consider lifting sanctions on the company Rasperia to help Raiffeisen Bank International offset significant losses in Russia.
These instances of member states holding sanctions packages hostage through vetoes, previously a hallmark of Hungary under Viktor Orbán, are becoming more frequent. With Orbán's departure, national interests are more openly taking precedence, even as countries publicly reaffirm their support for Ukraine. Diplomats acknowledge that finding common ground is increasingly difficult, and the European Commission faces challenges in proposing new, impactful sanctions as many obvious sectors have already been targeted. Some officials are considering adopting measures on a rolling basis rather than bundling them into large packages to avoid protracted negotiations.