EU Divisions Surface as Member States Dilute New Russia Sanctions After Orbán’s Exit

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The European Union is facing growing internal divisions over its latest sanctions package against Russia, as several member states push to weaken or remove key measures aimed at increasing economic pressure on Moscow.

EU ambassadors are expected to meet on Wednesday in an effort to finalize the bloc’s 21st package of sanctions against Russia—the first since Hungary’s former Prime Minister Viktor Orbán left office. Although a deal is still widely expected, negotiations have exposed competing national economic interests that have complicated efforts to reach unanimous agreement.

For years, Orbán’s close ties with the Kremlin and repeated threats to veto sanctions were often viewed as the primary obstacle to tougher EU action. However, with Prime Minister Péter Magyar now leading Hungary and no longer opposing additional sanctions, other member states have openly defended their own reservations.

Finnish Member of the European Parliament Ville Niinistö criticized the delays, saying it was disappointing that several governments had slowed efforts to strengthen sanctions at a time when Russia was beginning to feel increasing economic pressure from the war.

Diplomats involved in the negotiations said the European Commission’s original proposal has already been significantly diluted after objections from multiple capitals.

Greece has emerged as one of the strongest opponents of a proposal to ban EU companies from transporting Russian liquefied natural gas (LNG) to third countries. Athens argues that such restrictions would harm its globally significant shipping industry, particularly companies operating specialized ice-breaking tankers used to export Russian LNG.

Greek officials have also warned that shipping companies could simply transfer their vessels to jurisdictions with less stringent regulations, making enforcement more difficult.

Meanwhile, Greece, Malta and Cyprus initially delayed extending the EU’s oil price cap on Russian crude exports, although diplomats expect the extension to be approved if a compromise is reached on the LNG shipping dispute.

Austria also intervened during negotiations to raise concerns related to Raiffeisen Bank, which is seeking compensation after Russian authorities confiscated assets worth approximately €2.4 billion. The European Commission has reportedly agreed to examine the issue during future sanctions discussions.

Other proposed measures were removed entirely. Several governments opposed plans to gradually phase out imports of Russian fish, citing concerns over food prices and the impact on Europe’s fish-processing industry. The proposal would have prohibited imports of products including cod, haddock and pollock.

Bulgaria objected to sanctions targeting Russian Orthodox Patriarch Kirill, a prominent supporter of the Kremlin and Russia’s war against Ukraine. Italy also opposed the proposal, reportedly citing concerns expressed by the Vatican about sanctioning the head of another Christian church. As a result, Kirill was removed from the final draft.

France and Italy also pushed back against proposed visa restrictions targeting former members of the Russian armed forces, arguing that the legal framework for implementing such measures remains unclear. Those provisions were subsequently softened.

Despite the concessions, the sanctions package still includes significant new measures. Dozens of additional Russian banks are expected to be disconnected from the SWIFT international payment system, while more than 250 individuals are set to be added to the EU’s travel ban list, marking the bloc’s largest expansion of personal sanctions since 2023.

The negotiations underline that, despite Orbán’s departure from power, achieving consensus on new sanctions remains increasingly difficult as EU member states seek to protect their own strategic economic sectors while maintaining pressure on Russia.