Post-Orbán sanctions showdown exposes EU capitals’ red lines

Key Points:

• EU ambassadors are pushing to finalize the bloc’s 21st Russia sanctions package, but key measures have been weakened or dropped due to objections from member states protecting their economic interests in energy, fish processing, banking, and shipping.
• Hungary’s leadership change has removed a major obstacle to sanctions, but countries like Greece, Malta, Cyprus, Austria, Bulgaria, France, and Italy have raised concerns that have delayed or diluted parts of the package, including restrictions on Russian LNG shipments, fish imports, and sanctions against Russian Orthodox Patriarch Kirill.
• Greece opposes a ban on EU companies shipping Russian liquefied natural gas due to its large merchant fleet, while Austria has delayed talks over compensation related to Raiffeisen Bank’s expropriated assets in Russia.
• Despite concessions, the package includes significant measures such as cutting dozens of Russian banks off from the SWIFT system and banning over 250 people from traveling to the EU, marking the largest travel ban update since 2023.
• Overall, although Viktor Orbán’s departure from Hungarian leadership has eased some resistance, the EU continues to struggle with balancing sanctions ambitions against individual member states’ economic interests.