The adoption of the 19th package of EU sanctions against Russia is blocked primarily by Austria, which demands that part of the frozen Russian assets be released and transferred to the Raiffeisen bank as compensation, according to PAP information.
In mid-September, the head of the European Commission, Ursula von der Leyen, presented a proposal for the 19th package of sanctions against Russia. It included a ban on the import of Russian LNG to European markets and a transaction ban for Rosneft and Gazprom Neft. For it to enter into force, the unanimous consent of the EU 27 is required.
What is the bone of contention?
In negotiations over new sanctions Austria began to demand that sanctions against one of the Russian oligarchs, Oleg Deripaska, be partially eased. He wants some of his frozen assets to be released and transferred to Raiffeisen Bank as compensation. Despite the ongoing war, this bank still operates in Russia, and the local court imposed a fine of EUR 2 billion on it. The assets would constitute compensation for this fine.
As reported by EU sources, This week, Vienna again raised its opposition to the proposals of the 19th package, but its demands regarding Raiffeisen were not understood by other countries.
Many member states fear that this step would set a dangerous precedent for others targeted by sanctions. Some diplomats also point out that other financial institutions have withdrawn from operations in Russia, and the Austrian bank also had such an opportunity since the beginning of the aggression against Ukraine.
Unofficial information also shows that Slovakia continues to raise doubts about the part of the sanctions that concerns energy. Bratislava wants the issue of the embargo on Russian energy to come to the top to present its concerns about the security of oil supplies to this country, given that it has no access to the sea.
It is therefore possible that new sanctions will be adopted only after the summit on October 23 in Brussels. Regardless of the new package, the heads of state and government are to continue talking about the attack on Russia at this meeting – they will return to the debate on the EC's proposal to transfer the frozen assets of the Russian central bank to Ukraine in the form of a reparations loan.
What is the consent?
However, according to unofficial information, the member states have reached an agreement on limiting the freedom of travel of Russian diplomats within the territory of the Community. According to the arrangements, diplomats from Russia will have to notify in advance their intention to enter a given country. Each Member State will decide for itself whether it will allow them to enter. The voluntary nature of the regulations meant that Italy, which was initially skeptical about this solution, finally agreed to it.
There are no particular concerns in Brussels that Hungary could veto the 19th package. Although Budapest has repeatedly expressed reservations about some sanctions packages and demanded the removal of certain people from sanctions lists, EU diplomats point out that it has so far agreed to all eighteen sanctions packages.
According to the package, the withdrawal of Russian liquefied natural gas is to take place by January 1, 2027.
In addition to abandoning Russian LNG, the Commission wants the European Union to tighten measures limiting Russia's oil revenues as part of the 19th package. The Community allows trade in Russian oil only within a special limit. The head of the European Commission recalled that as part of the 18th package of sanctions, the EU reduced the price per barrel of oil from $60 to $47.6.
Von der Leyen also announced in September that as part of the 19th package, the EC proposed sanctions on 118 additional ships from the Russian so-called shadow fleets; it transports Russian oil, which is then sold at a price higher than imposed by international restrictions. A total of over 560 entities are to be subject to EU sanctions.
The main (Russian – PAP) energy trading companies, Rosneft and Gazprom Neft, will be subject to a total ban on transactions. Other companies will also be subject to asset freezes.
The chairwoman emphasized that the new package would fill financial gaps that Russia uses to circumvent sanctions. A block will be imposed on cryptocurrency transactions, and additional banks in Russia and third countries will be subject to restrictions.
According to it, export restrictions will be imposed on another 45 Russian and third-country companies that help supply the Russian arms industry with technologies.
Von der Leyen emphasized in September that the sanctions imposed on Russia are working. As she argued, this is evidenced by, among others, the fact that Russia points to the easing of restrictions as one of its main demands. – We know that our sanctions are an effective tool of economic pressure. We will apply them until Russia comes to the negotiating table with Ukraine, she noted.
In the opinion of the head of the European Commission, Russia's war economy is overheated and is approaching the limits of its capabilities. – The interest rate is 17 percent. Inflation is constantly high, and Russia's access to financing and its income are constantly decreasing, von der Leyen mentioned.
From Brussels Łukasz Osiński and Magdalena Cedro (PAP)
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