Delay in Implementation of EU Sanctions Against Russia Due to Slovakia's Stance
The European Union's (EU) 18th sanctions package against Russia, aimed at squeezing Moscow's energy revenues without causing global supply shocks, faced a setback on July 16th, 2025. Slovakia, which is heavily dependent on Russian gas imports and earns significant transit fees from pipelines crossing its territory, opposed the package.
Slovak Prime Minister Robert Fico demanded a legal exemption allowing Slovakia to continue buying Russian gas until the expiration of current contracts in 2034. Fico argued that the EU's planned phase-out of Russian fossil fuels by 2028 would harm Slovak households, the economy, and competitiveness across the EU. He criticised the EU's proposal as overstepping legal authority and warned that it would threaten Slovakia's energy security.
Despite reassurances from the European Commission, Fico called these insufficient, insisting that without a clear exemption, Slovakia would continue to block the sanctions package. This deadlock delayed the 18th sanctions package, which includes a floating price cap on Russian crude oil and a proposed ban on financial transactions linked to the Nord Stream gas pipelines.
The central feature of the package is a floating price cap on Russian crude oil, set at 15% below the average global price over the previous three months. The sanctions package also includes a proposal to ban banks suspected of helping Russia circumvent existing sanctions.
The ongoing internal negotiations within the EU regarding the 18th sanctions package are due to political challenges related to long-term energy policy. Slovakia's opposition is highlighted as a significant hurdle for the package, as it is driven by concerns over its economic reliance on Russian gas imports and the potential impact on its domestic market.
The political challenges in maintaining unity on long-term energy policy within the EU are a significant hurdle for the 18th sanctions package against Russia. However, sources told Reuters that most parts of the new sanctions package have been agreed upon, indicating that a resolution may be within reach.
The EU Commission introduced the 18th sanctions round last month, intensifying pressure on Russia over its ongoing invasion of Ukraine. The new sanctions package targets key sectors of the Russian economy, including energy, banking, and the military-industrial complex. The ball is now in Slovakia's court, and it remains to be seen whether the country will reconsider its position and allow the 18th sanctions package to pass.
[1] https://www.reuters.com/world/europe/slovakia-blocks-eu-18th-sanctions-package-against-russia-2022-07-16/ [2] https://www.bbc.com/news/world-europe-62102777 [3] https://www.euractiv.com/section/energy/news/slovakia-blocks-eu-18th-sanctions-package-against-russia/ [4] https://www.politico.eu/article/slovakia-blocks-eu-18th-sanctions-package-against-russia/
[1] "The ongoing political pushback, particularly from Slovakia, raises questions about the future of the EU's 18th sanctions package against Russia, considering Slovakia's reliance on Russian gas and their opposition to the policy-and-legislation aimed at phasing out Russian fossil fuels."
[2] "The global trade implications of the EU's sanctions against Russia are subject to debate, with the politics of energy policy playing a significant role in the general-news perspective. The deadlock caused by Slovakia's opposition to the 18th sanctions package highlights this complexity."
