EU Continues to Face Deadlock in Discussions on New Russian Sanctions
The European Union's efforts to establish a unified front against Russia through economic sanctions continue to encounter significant hurdles, with member states failing to reach consensus on the 21st package of measures since Russia's invasion of Ukraine in February 2022. Despite initial optimism following political changes in Hungary, the bloc remains divided on how to effectively pressure Moscow while addressing internal economic and political concerns.
Background and Expectations
Many EU diplomats had hoped that the departure of Hungarian Prime Minister Viktor Orban in May would facilitate smoother approval of sanctions against Russia. After 16 years in power, Orban was considered the most Kremlin-friendly leader within the bloc, and numerous European politicians and diplomats had frequently complained that Budapest had weakened the impact of sanctions targeting Russia.
Expectations were high when the European Commission's proposal for the 21st sanctions package was sent to European capitals in early June. Initial drafts seen by RFE/RL revealed that the package contained numerous ambitious measures aimed at further pressuring Russia's economy and military capabilities.
Continued Deadlock Despite July 15 Deadline
However, after nearly six weeks of negotiations, no agreement has been reached on the entire package, as all 27 EU member states must consent. The self-imposed deadline of July 15—the last Wednesday of EU ambassadorial meetings before Belgium's National Day on July 21, when most EU officials will be on summer vacation for approximately a month—passed without resolution. Notably, most measures have been watered down or eliminated to the extent that EU diplomats contacted by RFE/RL have dubbed the package "Emmental," after the Swiss cheese famous for its numerous holes.
Key Proposals and Their Current Status
The proposed sanctions package contained several significant measures that have faced substantial opposition:
- Russian Fish Import Ban: One prominent proposal was a ban on Russian fish imports, particularly cod, haddock, and pollock. However, several member states including Germany, Poland, and Portugal requested exemptions, as Russian fish is used in domestic food processing. As a result, this measure has been completely removed from the package.
- Ban on Entry for Russian Veterans: Another major proposal was an automatic ban on Russian veterans entering the EU's Schengen area. Estonia strongly advocated for this measure due to a 10% increase in tourist visas issued to Russian citizens in 2025 compared to the previous year. However, many Mediterranean countries, unwilling to reduce tourism—a primary source of income—have prevented any specific decision from being made.
- Oil Price Cap: Significant debate surrounded the imposition of a price cap on Urals oil—Russia's primary export. The European Commission's initial proposal was to maintain the price cap at $44.10 per barrel for six months to avoid an automatic increase to $60 on July 15. However, after several adjustments, this period has been reduced to just three months.
| Proposed Sanction | Current Status | Key Issues |
|---|---|---|
| Russian Fish Import Ban | Completely Removed | Member states requested exemptions for domestic food processing |
| Entry Ban for Russian Veterans | No Decision Made | Mediterranean countries oppose due to tourism concerns |
| Urals Oil Price Cap | Under Consideration | Duration reduced from six to three months |
Objections from Member States
Greece has requested unlimited exemption from an agreement signed in October 2025, which bans Russian LNG shipments to non-EU countries starting January 1, 2027. Greece argues that if EU companies are prohibited from transporting Russian LNG, the work would simply shift to non-EU companies and ports, allowing Russia to continue exporting fuel.
Simultaneously, Austria has delayed approval of the package, demanding compensation for its Raiffeisen bank, which claims to have had €2.5 billion seized from its operations in Russia. This has caused frustration among other member states, who argue that Raiffeisen voluntarily chose to remain in Russia while many other European governments encouraged businesses to withdraw.
Elements Likely to Remain in the Package
Ultimately, the package is expected to retain several sanctions against Russian banks as well as vessels believed to belong to Russia's shadow fleet, which is used to circumvent oil embargoes. More than 250 Russian individuals and companies will face asset freezes and visa bans, including former Russian Deputy Prime Minister and current head of the International Chess Federation Arkady Dvorkovich, and Russian Sports Minister Mikhail Degtyarev.
However, even this list has been softened when Bulgaria quickly vetoed the inclusion of three names in the initial proposal, including Patriarch Kirill, the leader of the Russian Orthodox Church, and billionaire Iskandar Makhmudov.
Future Outlook
These developments underscore the continuing challenge of achieving consensus within the EU on sanctions against Russia, despite earlier optimism. The bloc's unity appears increasingly strained as member states balance their commitment to supporting Ukraine against their own economic interests and political considerations.
Further discussions are scheduled for July 22, where negotiators will attempt to resolve remaining issues, particularly regarding the oil price cap. However, the prospects for a comprehensive package that maintains the original ambitious goals appear increasingly uncertain as the summer break approaches.
The ongoing deadlock highlights the complex geopolitical and economic calculations involved in maintaining a unified sanctions policy against a major energy supplier during a prolonged conflict, with each member state weighing its own strategic and economic priorities against the collective position of the European Union.