Ambassadors from EU member states will convene on May 6 to debate a new package of sanctions targeting Russia. The EU’s French Presidency stated on social media that the tomorrow agenda includes advancing the sixth sanctions package and addressing food security concerns, while also weighing financial aid to Ukraine.
Diplomatic sources cited by the DPA agency indicate that several EU capitals are seeking changes to the draft sixth package prepared by the European Commission.
Take the oil out of the bag…
Budapest has signaled it cannot back the current form of the proposed restrictions. Hungarian Prime Minister Viktor Orban argued that neither Hungary nor the EU as a whole is ready to accept or implement the measures in their present state. In a letter to the EC President, Orban urged that sanctions should be adopted only after all necessary preconditions are met across every member state.
He warned that enacting a new set of measures would require a massive modernization of alternative oil supply infrastructure and a complete reorganization of Hungary’s oil refining capacity. Orbán also contended that the sanctions have already redirected essential resources toward over-investment in fossil fuels, and that Brussels funds are effectively available on paper only.
Orban argued that the European Commission should refrain from pushing for an embargo on Russian oil. If the Commission insists on the proposal, he said, it must assume full responsibility for what he described as a historic misstep in European integration. He doubted that the current form of the sanctions package would keep fuel prices from rising further.
Slovakia has joined Hungary in voicing concerns over the oil embargo, calling the proposed phaseout of Russian oil controversial. The European Commission has offered temporary relief for several countries under existing contracts through the end of 2023, but Slovakia and Hungary find those carve-outs insufficient.
Meanwhile, the Czech Republic and Bulgaria are seeking the same relief, while Greece, Cyprus, and Malta worry the oil ban could harm shipping and energy operations. Bulgaria plans to request a postponement of the oil embargo next week. Energy Minister Aleksandar Nikolov stated that depending on European decisions, Bulgaria will pursue national measures to avoid refining disruptions and to keep production facilities operating smoothly.
..and put an atom
Some EU member states argue that the sanctions do not go far enough. Germany has urged the European Commission to tighten restrictions on Sberbank and to curb cooperation with Russia in peaceful nuclear activities. The Commission’s draft package envisions disconnecting Sberbank from SWIFT, though the exact intensity of the sanctions remains to be finalized. Berlin and The Hague are reportedly seeking a broader justification for banning Russian broadcasters Rossiya 24, TV Center, and RTR Planeta, citing concerns over press freedom. DPA notes that officials insist these channels are state-controlled propaganda outlets.
What will the new sanctions be?
European Commission President Ursula von der Leyen announced in a May 4 address to the European Parliament that the package would include a phased withdrawal from Russian oil, the disconnection of three additional banks from SWIFT, including Sberbank, and the cessation of broadcasting for three state channels in the EU. The EC also proposed extending a ban on services linked to the transport of Russian oil within a month, affecting shipping, brokerage, insurance, and related financial services provided by European companies. The aim is to curb Russia’s oil exports globally, potentially limiting Moscow’s options for buyers of oil and related materials.
Von der Leyen indicated that those deemed responsible for war crimes in Bucha would be included in the sanctions list. Reports indicate that the EC intends to bar Russians and Russian entities from acquiring European real estate or interests in property vehicles tied to real estate, and Bloomberg noted a potential prohibition on direct or indirect transfers of property rights to real estate in the EU as well as shares in investment vehicles that grant access to such real estate. AFP reported discussions about restricting entries for family members of Patriarch Kirill and Peskov, the Presidential Press Secretary, among others.
As of today, negotiators are balancing a wide array of national concerns with the need for a coherent EU-wide stance. The aim remains to strengthen the union’s energy security and economic resilience without imposing disproportionate costs on member states heavily dependent on energy imports. Attribution: DPA, Reuters, Bloomberg, AFP, and official EU communications.