European Union member states are struggling to agree on the details of a new package of sanctions against Russia, including how Vladimir Putin’s ban on the oil industry will work, diplomats told POLITICO.
Talks between the bloc’s 27 countries fell through without a deal on Sunday, and officials in Brussels are now expected to draw up a new compromise plan before convening another meeting of diplomats on Monday or Tuesday.
The envoys met several times to discuss the sixth package of EU sanctions against Russia, failing to sign the proposals, first announced publicly by European Commission President Ursula von der Leyen on May 4th.
The continuing difficulties reflect the fact that the measures that are being ordered – a critical ban on the import of Russian crude and refined fuels – will be deeply painful for some countries to adopt. The closure of the EU market for Russian fossil fuels is seen as a critical strategy for denying Putin the proceeds that help finance his war in Ukraine.
By April 27th, the bloc had imported about 44 billion euros in fossil fuels from Russia through shipments and pipelines since the invasion began, according to the Center for Energy and Clean Air Research.
Hungary and Slovakia – both relying heavily on Russian oil – sparked objections to von der Leyen’s plan last week and, along with the Czech Republic, won concessions from the Commission to have more time to comply with the ban.
Viktor Orbán’s Hungarian government struck a deal again on Sunday, diplomats said. On Friday, he warned that a plan to phase out Russian oil would destroy Hungary’s economy, likening it to a “nuclear bomb”.
“There is no compromise between member states,” said an EU diplomat. “Hungary is still against it [the package]and that’s the problem. “
After failing to reach an agreement on Friday, EU ambassadors met again Sunday for a new round of talks, but talks ended early in the afternoon. EU diplomats initially expected to reach an agreement by Friday or the weekend at the latest.
The European Commission is proposing the phasing out of Russian crude oil within six months and refined oil by the end of the year. The latest plans, released on Sunday and seen by POLITICO, call for Hungary and Slovakia to be given until the end of 2024, and the Czech Republic until the end of June of that year, before the oil embargo begins.
But an EU diplomat said the compromise had not gone far enough for Hungary, saying Budapest insisted it be completely free of the oil ban. Orbán had previously said his country needed at least five years, saying Hungary was landlocked and therefore more dependent on Russian oil than other countries that could access the resource through their ports.
“It’s impossible,” the diplomat said. “They want something like a complete waiver. But it’s crazy.”
Bulgaria is also dissatisfied with the text, a senior EU diplomat told POLITICO, also asking for a longer phasing-out period.
Diplomats expect the next meeting of EU ambassadors to take place on Monday or Tuesday, with the Russian president expected to set out his further intentions on Monday.
They also downplayed disagreements, saying only some details of the talks remain and that Tuesday’s deal would be realistic. The Hungarian embassy was not available for comment.
The planned oil embargo is not the only point of contention between EU countries. Other disagreements include, for example, whether EU ships should be banned from transporting Russian oil. This part of the package is on hold pending some form of G7 coordination. The aim is to ensure that measures are effectively targeted against Russia and are waterproof, so that countries such as China or Turkey do not benefit from the change in EU rules.
Difficulties are likely to worsen only when the EU tightens sanctions against Russia’s invasion of Ukraine, especially when attention is focused on cutting off Russian gas supplies.
“We have to be optimistic,” one diplomat said Sunday. “I hope that maybe tomorrow or Tuesday the package will be accepted. Everyone needs fresh air on this sunny Sunday and then they can come back tomorrow.”
Barbara Moens, Susan Lynch and David M. Hersenhorn contributed to the reports.
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