Support for new sanctions against Russia is waning in the EU — FT
Support for imposing new economic sanctions against Russia is waning in the European Union. Some member states are unwilling to back measures that could negatively impact their major companies.
It is noted that the waves of sanctions imposed after the start of Russia’s full-scale invasion of Ukraine in 2022 were intended to cut off sources of funding for the war. At the same time, according to five EU diplomats who participated in the negotiations, the demands of certain capitals raised concerns due to signs that Europe is increasingly less willing to tolerate the collateral damage of sanctions on its own companies that still do business with Russia.
As noted, since sanctions in the EU are adopted only with the unanimous support of all member states, objections from certain countries forced EU ambassadors to hold four days of negotiations in Brussels last week. However, no compromise was reached. This has heightened fears of a weakening of the EU’s internal unity, a decline in resolve to support Ukraine, and rising expectations of potential peace talks, which complicate the adoption of politically sensitive decisions.
“At the negotiating table, the moral imperative is carrying less and less weight. The capitals of all countries agree to tough rhetoric and talk of solidarity, but then it all fizzles out,” noted one diplomat.
The latest sanctions package includes new restrictions on Russian exports and the financial system, as well as a mechanism to maintain a price cap on Russian oil, which is intended to limit the Kremlin’s revenue from its sale. However, the implementation of these measures has been threatened by vetoes from certain countries.
Diplomats note that the scale of resistance from capitals to accepting the latest proposals has reached an unprecedented level.
Athens refuses to support the entire package unless it is allowed to continue transporting Russian liquefied natural gas to third countries. The Greek side explains its position by stating that the ban would cause significant losses to the business of influential shipping magnate George Prokopiou. The Greek government emphasizes that the new sanctions should inflict “significantly greater losses on Russia” than on the economies of EU countries and be “carefully balanced” to maximize pressure on Moscow and minimize negative consequences for Europe.
Portugal and Germany are also insisting on lifting the ban on Russian fish imports, citing the need to support their own fish processing industries.
France and Italy, which are leading tourist destinations in Europe, are advocating for easing the ban on issuing visas to Russian military personnel who participated in the war. Austria, meanwhile, has once again raised the issue of unfreezing Russian assets worth 2 billion euros to compensate Raiffeisen Bank for a fine imposed by Moscow.
European companies, including the Danish brewing group Carlsberg and the Finnish energy group Fortum, have suffered billions in losses as a result of sanctions and the confiscation of assets from Russian legal entities. Countries whose companies have suffered these consequences are increasingly frustrated that, in their view, their allies are either protecting their own corporate interests or demanding solidarity from them.
“There are certain member states that did not sever business ties with Russia in 2022 and 2023. The uncomfortable truth for these capitals is that sanctions are now beginning to hit precisely those sectors that remain the main sources of Russian revenue,” noted another diplomat.
The delay in adopting the 21st sanctions package and attempts to soften its measures come amid intensified Ukrainian strikes on military and industrial targets deep within Russian territory, particularly in Moscow and at key oil refineries. Western officials hope that maintaining unity among Ukraine’s allies will force the Kremlin to come to the negotiating table.
However, diplomats acknowledge that the reluctance of some member states to support tougher sanctions—even in the face of potential losses to their own economies—depends largely on the extent to which they perceive Russia as a direct threat to their security.
This is reported by the FT.
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