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EU agrees on new Russia sanctions package targeting energy and finance

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The EU has agreed on a new Russia sanctions package, with ambassadors reaching consensus on the bloc’s 18th sanctions round targeting key sectors of the Russian economy, Suspilne reports. Malta and Slovakia reportedly lifted their vetoes after receiving critical assurances, clearing the way for formal adoption at the EU Council’s meeting later today, 18 July.

Malta and Slovakia lift vetoes, clearing way for approval

According to Suspilne, Malta withdrew its objection after receiving written guarantees from the European Commission. The country wanted confirmation that the proposed oil price cap would not strengthen Russia’s shadow fleet, a concern tied to Malta’s large shipping sector.

Pro-Russian Slovak Prime Minister Robert Fico announced earlier on Facebook that Slovakia had also dropped its veto. His government received EU guarantees related to gas prices and supply stability. Fico, however, underlined that Slovakia would never support ending Russian gas imports after 1 January 2028.

Both countries had previously blocked consensus on the package, which was introduced by the European Commission in June. 

Package includes pipeline bans and price cap changes

The new Russia sanctions package will include a formal ban on the Nord Stream 1 and 2 pipelines. EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said the bloc will also reduce the oil price cap as part of efforts to cut the Kremlin’s war revenues.

Kallas called the deal “one of the strongest” sanctions packages yet, noting it is designed to shrink Russia’s ability to finance its war in Ukraine. She also confirmed that the EU will continue to increase the costs of aggression for Moscow.

Germany and Sweden requested that the package be placed on the Council’s agenda under “Other business.” Once the General Affairs Council formally approves it, the sanctions will become legally binding.

Shadow fleet, banks, and drone tech also targeted

The package includes sanctions on 105 ships from Russia’s shadow fleet and on the entities enabling their operations. A registry of ship flags will be introduced to identify and track these vessels, which are used to obscure the origin of Russian oil.

In addition, 22 Russian banks will face new financial restrictions aimed at cutting their access to international funding. Brussels will also ban the export of European technologies used in Russian drone production.

Kallas confirmed that Chinese banks helping Russia evade restrictions are among the foreign entities targeted. The EU plans to limit their ability to support Russian financial transactions that bypass sanctions.

Rosneft refinery in India and indoctrination networks included

For the first time, the EU will sanction a foreign-based refinery—India’s largest Rosneft facility—due to its role in processing and moving Russian oil. The package also targets individuals and organizations involved in indoctrinating Ukrainian children in Russian-occupied territories.

Lithuanian Foreign Minister Kęstutis Budrys welcomed the agreement, stating that the combination of shipping, energy, and financial measures would ensure Russia remains on track to lose access to “blood money.” He also urged the US Senate to pass its own Russia sanctions legislation to align with EU efforts.

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Hungary and Slovakia block new EU sanctions against Russia, Szijjártó says

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Hungary and Slovakia blocked the European Union’s 18th sanctions package against Russia, Hungarian Foreign Minister Péter Szijjártó confirmed on 23 June. Despite never supporting Kyiv militarily, Hungary also declared it would no longer support Ukraine militarily or financially, as Budapest continues aligning itself with Moscow’s interests inside the EU.

Hungary under Prime Minister Viktor Orbán has consistently acted as Russia’s closest ally within the EU since the start of Russia’s full-scale invasion of Ukraine in 2022. The country has never provided military aid to Kyiv, refuses to allow military cargo transit through its territory, and has regularly obstructed EU efforts to support Ukraine.

Budapest obstructs new sanctions package

According to Liga, Szijjártó announced at a press briefing streamed on Facebook:

“We, together with Slovakia, prevented the adoption of the sanctions package today.”

The move came in direct response to the European Commission’s ongoing push to reduce EU dependency on Russian energy.

Szijjártó justified the veto by referencing the EU’s June 2022 decision that had granted Hungary and Slovakia a full exemption from the Russian oil embargo introduced in the sixth sanctions package. Hungary believes that the ban on purchasing cheap Russian gas and oil violates previous agreements.

“The European Union decided unanimously that Hungary and Slovakia would receive a full exemption for an unlimited time from the oil embargo on Russian crude,” he claimed.

Veto used to counter Commission’s energy plan

Hungary cannot directly veto the Commission’s energy strategy, which only needs a qualified majority vote, so it blocked the sanctions package instead. Szijjártó described this majority-voting mechanism as allegedly “a very serious violation of European legal norms.”

He also warned that restricting access to Russian energy now, amid rising instability in the Middle East and threats to the Ormuz Strait, would lead to major losses and a supply crisis in Europe. 

Hungary says ‘no more’ to Ukraine

Szijjártó condemned what he called “increasingly pro-Ukrainian military sentiment” among EU foreign ministers. He noted that the EU has already provided Ukraine with 10 trillion forints—about €25 billion—this year alone.

“But today it was said that even that is not enough,” Orbán’s minister complained.

Hungary, he said, will block any further attempts to support Kyiv:

“We will not allow Hungarian money to be sent to Ukraine. We are not ready to support any new financial aid, any new arms deliveries, or any new military operations.”

 

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