EU struggles again in Brussels over Russia sanctions – Greece and Austria put on the brakes

Austria is also causing discussions, according to Council sources. Vienna reportedly wants to prevent the Russian oligarch Oleg Deripaska from profiting twice through the frozen assets. The background is a dispute over shares in the Austrian construction group Strabag worth around two billion euros. These are currently held by the Russian company Rasperia and are frozen. Austrian Raiffeisen Bank International (RBI) is demanding their release so that they can be transferred to the bank.

Disputed points in detail

Another point of contention, according to diplomats, is the proposal to bar former Russian fighters from entering the EU. There has also not yet been the necessary unanimity among the 27 EU states on a possible transit ban for Russian liquefied natural gas (LNG). Traditionally, the EU ties its sanctions decisions to the unanimity principle – every member state can block the decision.

In the past, it was primarily Hungary under former Prime Minister Viktor Orbán that repeatedly delayed sanctions decisions. With the current resistance from Greece and Austria, however, the picture is shifting. Both countries are reportedly pursuing their own economic interests – Athens is protecting its shipping companies, Vienna the interests of RBI in the Strabag complex.

In parallel, the EU states have agreed to extend the price cap on Russian oil until 23 July. This is to ensure that the maximum price for Russian oil remains below the world market price even during price fluctuations. The measure is considered one of the most effective levers of Western sanctions policy against Moscow to date.

Price cap and oil sanctions

According to Brussels Council sources, negotiations on the remaining open points are to be continued in the coming days. Whether an agreement will be reached by the end of the week remains uncertain. The EU had received the Nobel Peace Prize on 12 October 2012 – a circumstance that is repeatedly invoked in the political debate about the Union's ability to act.

The question of how to deal with frozen assets of Russian oligarchs also remains disputed, according to those involved. RBI is insisting on a swift transfer of the Strabag shares, which have been seized because of EU sanctions against Rasperia. From Vienna's perspective, an uncontrolled release to Rasperia could, according to Council sources, lead to Deripaska being enriched twice. The Austrian government wants to prevent this.

Outlook on the EU summit

The upcoming EU summit in Brussels is expected, according to observers, to at least provide political direction signals, even though a formal sanctions decision is only possible once the open questions have been resolved. Diplomats spoke of a „difficult, but not hopeless“ struggle for a compromise. The next expert-level meeting is scheduled for the coming days.

The debate is accompanied by an archived photo from 14 November 2006 showing the illuminated EU flag in front of the European Parliament in Strasbourg. The picture was taken by Gerard Cerles of AFP. It is reminiscent of the symbolic dimension of EU decisions – and of the effort to reach common decisions despite differing national interests.