EU unity cracks: more member states demand exemptions from anti-Russian sanctions

The European Union's unity in agreeing new sanctions against Russia is starting to fall apart — several member states are demanding exemptions for themselves or blocking proposed measures, fearing damage to their own businesses. That's according to the Financial Times, citing five diplomats involved in the negotiations.

According to the paper, objections have come from Greece, France, Italy, Germany, Austria and Portugal, among others. Since sanctions require unanimous approval from all 27 member states, the disagreements have led to days of ambassadorial talks in Brussels that have so far failed to produce agreement on the 21st sanctions package.

Diplomats warn that European governments are increasingly reluctant to accept measures that could hurt their own economies. "Everyone talks about solidarity and taking a tough stance on Russia, but when it comes to concrete decisions, support falls apart," one source told the paper.

The main sticking point is the shipping of liquefied natural gas (LNG). Greece refuses to back the whole sanctions package unless the ban on transporting Russian LNG to third countries is dropped. According to the Financial Times, the ban would deal a serious blow to Dynagas, a company owned by Greek shipowner Yiorgos Prokopiou, which has shipped more than 30 million tonnes of gas worth over $24 billion (more than half a trillion Czech crowns) from Russia's Yamal LNG project since the start of the full-scale invasion.

Other countries are pushing their own carve-outs. Germany and Portugal want the ban on Russian fish imports removed from the package, citing the interests of domestic processors. France and Italy are seeking to soften the visa ban on Russian servicemen who fought in Ukraine. Austria is once again insisting on unfreezing €2 billion in Russian assets to compensate Raiffeisen Bank International for a fine imposed by Russian authorities.

Sources say the current situation is unprecedented: in the early years of the war, EU countries were more willing to accept the economic costs of sanctions, but now they are increasingly trying to shield industries that continue to profit from trade with Russia. One diplomat noted that these very industries remain the last significant source of income for the Russian economy.

Jacob Kirkegaard, an analyst at the Brussels-based think tank Bruegel, told the paper that the EU appears to be nearing the limits of how far it can tighten sanctions further, as national governments increasingly refuse to sacrifice their own strategic interests and companies — a trend that could seriously complicate any expansion of the sanctions regime.

This comes as Ukraine steps up strikes on targets deep inside Russian territory, with Western allies hoping that a combination of military pressure and economic sanctions will push Moscow toward talks to end the war. However, diplomats say, EU member states increasingly disagree on how serious a threat Russia poses — a divide that is directly affecting their willingness to back new sanctions.

Around Prague, based on reporting by seznamzpravy.cz