New sanctions against Russia: Austria and Greece insist on exceptions

The European Union has failed to reach agreement on its latest sanctions package against Russia, with Greece and Austria pushing for exemptions that could undermine the measures' effectiveness. The talks among EU ambassadors continued through Wednesday, with no resolution found despite four consecutive days of discussions. The negotiations were delayed until the following week, with the automatic adjustment of the oil price cap for Russian crude oil temporarily suspended. This delay was intended to buy time, as the current mechanism would have raised prices above market levels, contrary to its intended purpose of reducing Russian revenues. Greece and Austria remain locked in disputes over two key exemptions. Greece seeks to preserve its lucrative role in transporting Russian liquefied natural gas (LNG) to third countries. Greek shipping companies control nearly a quarter of the world’s LNG tankers and are the main Western carriers of Russian LNG. Despite EU-wide bans on importing LNG into the bloc starting January 1, 2027, imports rose sharply in 2023, reaching ten million metric tons worth almost six billion euros. Greece aims to protect existing contracts, even beyond the 2027 deadline, while avoiding new agreements. However, the European Commission opposes this, arguing that banning the sale of Russian LNG to non-EU states violates the principle of neutrality in trade. Energy Commissioner Dan Jørgensen clarified that such restrictions apply regardless of whether the LNG is destined for the EU or elsewhere. Discussions continue on allowing existing contracts to be fulfilled past 2027, though new ones would still be prohibited. Austria, meanwhile, is seeking an exemption to compensate the Raiffeisen Bank International (RBI) for losses incurred due to sanctions. In early 2025, a Russian court ordered the Russian subsidiary of RBI to pay approximately two billion euros in damages to Rasperia Trading, an investment firm controlled by oligarch Oleg Deripaska, who was sanctioned by the EU after the start of Russia's invasion of Ukraine. Rasperia and the Raiffeisen Bank Niederösterreich/Wien hold stakes in Austrian construction company Strabag. When Rasperia was added to the EU’s sanctions list, the Raiffeisen bank froze its shares, preventing Rasperia from receiving dividends. A subsequent legal challenge in Austria failed, but a Russian court ruled in favor of Rasperia, ordering compensation based on the value of the shares. Austria now demands that sanctions against Rasperia be lifted so that the frozen Strabag shares can be seized and transferred to RBI as compensation. Other businesses affected by sanctions have not received similar relief. Diplomats argue that it is unacceptable for some firms to suffer financial harm without recourse, yet the broader consensus among member states remains resistant to granting exceptions. The debate highlights the growing tension between maintaining economic pressure on Russia and protecting the interests of individual nations within the EU framework. As the negotiations continue, the outcome will determine how effectively the 21st sanctions package can balance these competing priorities.