Slovakia’s Fico Demands EU Guarantees on Russia Sanctions, Blocks Deal

EU Sanctions Against Russia Stall Amidst Member State Disagreements on Oil Price Cap and Energy Guarantees

Efforts by the European Union to implement an 18th package of sanctions against Russia have encountered meaningful hurdles, with member states failing to reach a consensus on key proposals. While current restrictive measures have been extended for six months, disagreements over an oil price cap and energy security guarantees have stalled the advancement of new punitive actions.

The initial sanctions package, submitted on June 10, aimed to target Russia’s energy and banking sectors. Proposed measures included restrictions on transactions related to the Nord Stream pipeline, technology, and dual-use goods, alongside a reduction in the price cap for Russian oil from $60 to $45 per barrel. Though, by June 26, EU countries were unable to agree on the 18th package.

Further complicating the situation, reports emerged on June 30 that Slovakia and Hungary were blocking the proposed sanctions. Bratislava specifically demanded guarantees from the EU regarding a complete cessation of Russian gas imports by 2028. The impasse continued, with EU ambassadors unable to reach an agreement on the 18th sanctions package at a meeting on July 4.

Adding to the opposition, Malta expressed its dissatisfaction with the EU’s proposal to lower the price cap for Russian oil. According to Politico, citing a European diplomat, Malta voiced its concerns on July 13 during a meeting of the Committee of Permanent Representatives of the EU Member States. The new initiative reportedly proposed setting Russia’s highest export price for energy resources at 15% below market prices, calculated as the average of the last three months.

Prior to Malta’s objections, greece and Cyprus had also raised concerns. Bloomberg reported that these three countries insisted that any changes to the sanctions regime must be agreed upon with G7 partners, including the United States.

DPA/Picture-Alliance/Scanpix/European Union flags

The ongoing negotiations highlight the complex geopolitical and economic considerations that EU member states face when formulating a unified sanctions policy. The differing national interests, notably concerning energy security and economic impact, continue to shape the pace and scope of the EU’s response to Russia’s actions.

The situation underscores the challenges inherent in achieving consensus among 27 member states on sensitive foreign policy and economic measures.The effectiveness of future sanctions packages will likely depend on the EU’s ability to navigate these internal divisions and find common ground that addresses both the strategic objectives and the diverse economic realities of its members.