EU's 21st Russia sanctions package stalled by member states' objections

European Union ambassadors are encountering significant hurdles in finalizing the 21st package of sanctions against Russia, a process complicated by member states openly articulating their objections to measures impacting crucial economic interests.

For years, Hungarian Prime Minister Viktor Orban often acted as the public face of opposition to stricter EU sanctions, providing cover for other capitals hesitant to challenge the bloc's consensus. However, with Orban no longer in that position, governments are now compelled to defend their specific concerns publicly. This shift has revealed a growing divergence of interests, particularly in sectors like energy, fish processing, banking, and shipping.

"It was a surprise and disappointment to see how many member states delayed their actions," stated Vile Nijinisto, a Finnish Member of the European Parliament and chair of the European Parliament's delegation for relations with Russia. "It is of utmost importance that we continue to strengthen EU sanctions against Russia at this moment, when Russia is beginning to feel the pressure of the war on its domestic economy and in public perception."

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It was a surprise and disappointment to see how many member states delayed their actions. It is of utmost importance that we continue to strengthen EU sanctions against Russia at this moment, when Russia is beginning to feel the pressure of the war on its domestic economy and in public perception.

While an agreement is still anticipated, further concessions may be necessary. Sources indicate that several measures have already been softened or discarded. The 21st package, presented by European Commission President Ursula von der Leyen in June, highlights the increasing difficulty the EU faces in finding "low-hanging fruit" as sanctions rounds mount. "There are no more low-hanging fruits, after 20 packages. Increasingly you will encounter the interests of individual member states, so you have to find a balance," commented one EU diplomat involved in the negotiations.

Greece, in particular, has resisted supporting the current package due to a proposed ban on EU companies transporting Russian liquefied natural gas (LNG) to third countries. As the operator of the world's largest merchant fleet, Greece is concerned about the impact on a national company that manages ice-class tankers involved in exporting Russian LNG. Greek officials warned that such a measure could prompt vessels to change flags to jurisdictions where enforcement would be even more challenging.

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There are no more low-hanging fruits, after 20 packages. Increasingly you will encounter the interests of individual member states, so you have to find a balance.