Support for new sanctions against Russia declines in EU – Financial Times

The Financial Times stated this in an article, citing diplomatic sources, Ukrinform reports.

It is noted that the waves of sanctions imposed after Russia’s full-scale invasion of Ukraine in 2022 were intended to cut off sources of financing for the war. At the same time, according to five EU diplomats involved in the negotiations, demands from individual capitals have caused concern amid signs that Europe is becoming increasingly unwilling to tolerate the side effects 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 individual countries forced EU ambassadors to spend four days negotiating in Brussels last week. However, no compromise was reached. This has heightened concerns about weakening internal EU unity, declining resolve to support Ukraine, and rising expectations of possible peace talks, which make politically sensitive decisions more difficult.

One diplomat said that at the negotiating table, the moral imperative was becoming less and less effective. The diplomat added that the capitals of all member states agreed to tough rhetoric and spoke of solidarity, but that it ultimately all dissolved.

The latest sanctions package includes new restrictions on Russian exports and the financial system, as well as a mechanism to preserve the price cap on Russian oil, which is intended to limit Kremlin revenues from its sale. But implementation of these measures has been put at risk by vetoes from individual states.

Diplomats say the scale of capitals’ refusal to accept 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 saying that the ban would cause significant losses for the business of influential shipping magnate George Prokopiou. The Greek government stresses that new sanctions must inflict significantly greater losses on Russia than on EU economies and must be carefully calibrated in order to maximize pressure on Moscow and minimize negative consequences for Europe.

Portugal and Germany are also insisting on lifting the ban on imports of Russian fish, citing the need to support their own fish-processing industries.

France and Italy, which are among Europe’s leading tourist destinations, are in favor of easing the ban on issuing visas to Russian military personnel who took part in the war. Austria has again raised the issue of unfreezing €2 billion in Russian assets 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 Russian legal entities. Countries whose companies have been affected by such consequences are increasingly irritated that, in their view, allies are protecting their corporate interests or demanding solidarity from them.

Another diplomat said that certain member states had not severed business ties with Russia in 2022 and 2023. The diplomat added that the inconvenient truth for those capitals was that sanctions were beginning to affect precisely the sectors that remained the main sources of Russian revenue.

The delay in adopting the 21st sanctions package and attempts to soften its measures come amid intensified Ukrainian strikes on military and industrial facilities deep inside Russian territory, including Moscow and key oil refineries. Western officials hope that preserving 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 despite potential losses for their own economies, largely depends on how directly they perceive Russia as a threat to their security.

As Ukrinform reported, the EU Council imposed restrictive measures on one person and five organizations from Russia.