EU sanctions push on Russia faces mounting member-state resistance

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EU sanctions face resistance

Highlights

EU member states including Greece, France, Italy, Germany, Austria, and Portugal are blocking the latest Russia sanctions package due to concerns over domestic business interests.
Greece demands exemption for shipping Russian LNG, Portugal and Germany seek to lift a ban on Russian fish, and Austria wants €2 billion in Russian assets unfrozen for Raiffeisen Bank compensation.
Diplomats report unprecedented resistance to the 21st sanctions round, reflecting growing tension between support for Ukraine and aversion to domestic economic costs.

National carve-outs stall latest package

As reported by Financial Times, EU diplomats warn that a growing number of national capitals are refusing to endorse sanctions that would hit important domestic business interests, leaving member-state ambassadors without agreement after four days of talks in Brussels over the past week.

The latest measures target Russian exports, the country’s financial system and the oil price cap mechanism designed to keep crude export prices artificially low. Because sanctions require unanimous backing, objections from countries including Greece, France, Italy, Germany, Austria and Portugal are holding up the package and fuelling concern that internal solidarity is eroding.

Greece is refusing to support the package unless it secures approval for transporting Russian liquefied natural gas to third countries, arguing that a ban would damage the interests of Greek shipping. Diplomats say Portugal and Germany are also seeking to remove a ban on buying Russian fish to protect local fish-processing industries, while France and Italy want a proposed visa ban on Russian soldiers who served in the war to be softened. Austria is reiterating its demand that 2 billion euros in Russian assets be unfrozen to compensate Raiffeisen Bank for a fine imposed by Moscow.

Diplomats involved in the negotiations say the scale of resistance is unprecedented after 20 previous sanctions packages since just before Russia’s full-scale invasion of Ukraine in 2022. They argue that tougher rhetoric in support of Kyiv is increasingly colliding with reluctance to accept direct costs for national companies.

In our earlier article about Ireland’s Aughinish Alumina plant, we examined how the facility came under EU and domestic scrutiny over alumina exports that may end up in Russia’s industrial supply chain. We noted that Dublin faced mounting pressure to back tougher restrictions while weighing the potential impact on jobs, regional industry and energy-related contributions linked to the plant.

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