EU diplomats grapple with member-state objections as they finalize 21st Russia sanctions package

EU ambassadors are set to meet on Wednesday to try to close the bloc's first Russia sanctions package since Hungary's new government took office, after several member states trimmed or dropped provisions that threatened national economic interests.

Finnish MEP Ville Niinistö, who chairs the European Parliament's Russia delegation, said the pace of progress had been "a surprise and a disappointment" and stressed the need to keep strengthening sanctions while Russia feels pressure from the war.

The package, presented by Commission President Ursula von der Leyen in June, is the 21st since the invasion of Ukraine and must be approved unanimously by all 27 EU countries. Diplomats say the earlier rounds have exhausted the easy targets, forcing negotiations to confront individual member-state priorities.

Greece has blocked the proposal that would ban EU firms from shipping Russian liquefied natural gas to third countries, citing concerns that Greek-owned ice-breaking tankers could be forced to re-flag and operate under less stringent regimes. The Greek ambassador warned that such a move could undermine enforcement. Greece, along with Malta and Cyprus, also hesitated over a six-month extension of the freeze on the $44.10-per-barrel price cap on Russian oil.

Austria raised an objection on behalf of Raiffeisen Bank, which seeks compensation for the expropriation of assets in Russia. The Commission responded with a promise to address the issue in a future sanctions round.

Several proposals were removed after member states raised concerns, including a phase-out of Russian fish imports and sanctions targeting Russian Orthodox Patriarch Kirill. Bulgaria and Italy opposed the Kirill measure, while France and Italy objected to restrictions on former Russian soldiers, arguing that the identification system was not ready.

The final text still includes the removal of dozens of Russian banks from the SWIFT messaging system and a travel ban on more than 250 individuals, marking the largest addition since 2023. Despite the concessions, diplomats note that the departure of Hungary's former leader has not dramatically eased the task of tightening economic pressure on Moscow.