EU sanctions unity faces strain as bloc weighs new Russia package

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EU sanctions unity faces strain

Highlights

Several EU countries, including Greece, Germany, and Portugal, are pushing for exemptions in the new sanctions package to protect key domestic industries, threatening bloc unity.
Russian LNG supplies from the Yamal project to France, Belgium, and Spain surged 18 percent year-on-year in H1 2026 despite an upcoming import ban from January 1.
EU sanctions fatigue is rising as Ukraine gains ground and Russian economic pressures increase, risking weakened enforcement and emboldening Moscow to extend the conflict.

Sanctions package faces mounting carve-out pressure

As reported by Financial Times, several EU capitals are seeking exemptions or resisting parts of the proposed new sanctions package in an effort to shield domestic industries and national economic interests. Greece is trying to protect a shipping company from an EU ban on transporting Russian liquefied natural gas to third countries, while Germany and Portugal want a proposed block on buying Russian fish removed.

France and Italy have also pushed to narrow a visa ban on Russian military veterans so it applies only to those who served in Ukraine. EU ambassadors meet on Wednesday for a final attempt to reach consensus before the summer recess, but the growing search for carve-outs is raising concerns that the wider sanctions framework could begin to weaken.

The tensions also reflect uneven burdens within the bloc. Greece can point to continued Russian LNG imports by France, Belgium and Spain, which help drive record supplies from Russia's Yamal project in the first half of 2026, up 18 per cent year on year, even though a ban on LNG imports under long-term contracts comes into force on January 1.

Pressure on Russia raises stakes for Europe

Ukraine is in a comparatively stronger position than in earlier phases of the war, with frequent drone strikes on Russian oil refineries disrupting fuel supplies and adding to economic strain inside Russia. On the battlefield, Russia's offensives are faltering, while western officials estimate Moscow is suffering about 35,000 killed or wounded a month relative to limited territorial gains.

Those military pressures are adding to the effects of earlier western sanctions. Russia's refining capacity is under strain, crude continues to trade at a discount to world prices, and labour shortages alongside the shift to a war economy are fuelling inflation, lifting interest rates and worsening bad loan pressures in the banking system.

Although President Vladimir Putin is showing little sign of backing down and could still escalate, a perception in European capitals that a ceasefire may be more attainable is feeding sanctions fatigue. If member states prioritise narrow national protections over collective enforcement, the bloc risks signalling to Moscow that Europe's political tolerance is nearing its limit, potentially encouraging Russia to prolong the war at greater long-term cost to European security and prosperity.

In our earlier article on the EU’s push to agree a 21st sanctions package against Russia, we outlined how several member states were seeking exemptions to protect domestic industries—risking a diluted, less credible regime. We also noted that record Russian LNG inflows from the Yamal project and uneven burden-sharing were adding to intra-bloc tensions at a moment when pressure on Moscow is rising through battlefield setbacks and economic strain.

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