Brussels – A coordinated effort to impose new sanctions on Russia and approve a substantial financial aid package for Ukraine faltered Monday, as Hungary unexpectedly blocked both measures on the eve of the fourth anniversary of Russia’s full-scale invasion. The impasse underscores growing divisions within the European Union regarding strategy toward Moscow and support for Kyiv.
The stalled sanctions package, the 20th proposed by the EU, aimed to tighten the economic pressure on Russia by targeting its shadow fleet and energy revenues. Simultaneously, a proposed €90 billion ($106 billion) loan was intended to bolster Ukraine’s military and economic stability over the next two years. The failure to reach an agreement sends what EU foreign policy chief Kaja Kallas called “a setback and a message we did not want to send today,” according to the Associated Press.
The obstruction comes as international leaders mark the approaching anniversary of the conflict, which began on February 24, 2022 and has resulted in an estimated 1.8 million Russian and Ukrainian soldiers killed, wounded, or missing. German Chancellor Friedrich Merz, speaking at a pro-Ukrainian event in Berlin, appealed for continued support, stating, “We are standing at a crossroads that could decide on the well-being of our whole continent.” French President Emmanuel Macron echoed this sentiment, reaffirming France’s “unwavering” commitment to Ukraine during a meeting with Finnish President Alexander Stubb, another strong advocate for Kyiv.
Hungary’s resistance centers on the resumption of Russian oil deliveries. Shipments to Hungary and Slovakia have been disrupted since January 27 following reported damage to the Druzhba pipeline, allegedly caused by Russian drone attacks, according to Ukrainian officials. Hungarian Prime Minister Viktor Orbán has publicly accused Ukraine of deliberately blocking oil shipments and attempting to destabilize his government, a claim he reiterated Monday, referring to the situation as a “Ukrainian oil blockade” led by President Volodymyr Zelenskyy. Hungarian Foreign Minister Péter Szijjártó insisted that Hungary’s energy security must not be jeopardized.
Hungary’s Veto and EU Treaty Obligations
Kallas stated that Hungary’s stance on the loan package contradicts EU treaties. While Hungary had previously agreed to the financial aid for Ukraine, it is now linking its approval to the restoration of Russian oil supplies. The situation highlights Hungary’s unique position within the EU as a member state that has maintained and even increased its reliance on Russian energy sources, benefiting from a temporary exemption from EU policies restricting Russian oil imports.
The timing of Hungary’s objections has raised concerns, particularly as the country prepares for crucial elections in the coming months. Poland’s Foreign Minister Radosław Sikorski suggested that Orbán’s actions may be motivated by domestic political considerations, aiming to exploit anti-Ukraine sentiment to bolster his electoral prospects. Sikorski expressed shock at the “climate of hostility towards the victim of aggression” fostered by Hungary’s ruling party.
International Pressure on Russia
Despite the setback, several European leaders emphasized the importance of increasing the economic costs for Russia to compel a peaceful resolution to the conflict. Chancellor Merz argued that “This war will only end when Russia no longer sees any sense in continuing it…when Russia’s costs for this madness have simply become too high,” calling for a concerted effort to “dry up Moscow’s war financing.” Finland’s President Stubb characterized Russia’s war as a “strategic failure” – militarily and economically – and urged allies to intensify pressure on President Putin.
The EU has already provided Ukraine with €194.9 billion ($229.8 billion) in financial assistance and implemented measures to curtail Russia’s energy exports. But, Hungary and Slovakia remain exceptions, continuing to import Russian oil and gas despite widespread reductions across the continent.
Looking Ahead
The failure to secure unanimous agreement on the sanctions package underscores the challenges facing the EU in maintaining a unified front against Russia. The situation raises questions about the future of EU sanctions policy and the potential for further divisions within the bloc. Negotiations are expected to continue, but the outcome remains uncertain as the anniversary of the war approaches. The coming weeks will be critical in determining whether the EU can overcome internal obstacles and demonstrate continued resolve in supporting Ukraine.
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