Skip to content
All about politics.

Robert Fico vetoed the new EU sanctions on Russia for monetary reasons.

Advice given by at least five European nations to their citizens planning to participate in the event: Potential €500 fines may be enforced, and there's a possibility of increased security risks due to a potential counter-demonstration from Hungarian far-right groups.

,   and  ASMedia
3 min read
Robert Fico's Veto of EU Sanctions on Russia Stems from Monetary Considerations
Robert Fico's Veto of EU Sanctions on Russia Stems from Monetary Considerations

Robert Fico vetoed the new EU sanctions on Russia for monetary reasons.

Ranting Through the Headlines: The Fico Veto and EU Sanctions on Russia

Robert Fico's obstinate stance against the latest EU sanctions against Russia has the EU up in arms.

When Robert Fico, Slovakia's stubborn prime minister, confirmed his decision to veto the EU's latest sanctions package on Russia earlier this week, tongues wagged across Brussels.

The veto, Fico explained, was a direct response to the EU's bid to phase out all imports of Russian fossil fuels by the end of 2027, as outlined in the REPowerEU roadmap. For Fico, this sudden phase-out threatens to create a calamitous economic and energy crisis in Slovakia, causing widespread harm to households and businesses alike.

You see, as a landlocked country with a dubious reputation for entrenched ties to Russian fuels, Slovakia has always maintained a love-hate relationship with the EU's sanctions against Russia. And this latest veto marks the culmination of the Slovak government's resistance against the EU's energy policy.

But let's break this down, shall we?

The REPowerEU Roadmap: A Kick in the Teeth for Slovakia?

The REPowerEU roadmap, unveiled by the European Commission in May, aims to put an end to Russian fossil fuel dependence once and for all. The roadmap proposes a phase-out of all Russian fossil fuel imports, including pipeline gas and liquefied natural gas (LNG), by the end of 2027. Undoubtedly, this plan has been a long time coming, in response to Russia's repeated use of energy as a weapon against its neighbors.1

But for Slovakia and Hungary, both countries heavily reliant on Russian gas, the sudden phase-out could spell economic disaster. Higher fuel costs and reduced competitiveness are just a few of the potential consequences that Slovakia fears.2

High Stakes: Fico's List of Demands

Fico's decision to veto the 18th package of sanctions came after a bilateral meeting with Ursula von der Leyen, the Commission president, at an EU summit in Brussels. Tensions escalated in the days leading up to the summit, as officials within the Commission sounded optimistic that a compromise would be reached.3

But Fico wasn't about to back down.

In a video message posted on his Facebook account during the summit, Fico laid out a lengthy list of grievances, making it clear he was open to negotiations—but at a steep price. His primary demands include:

  1. Transit fees: Fico demands that transit fees for bringing alternative supplies from Western, Northern, and Southern countries will remain the same after the phase-out of Russian pipeline gas.
  2. Consumer prices: Higher transit fees coupled with the phase-out of inexpensive Russian gas could lead to a 30-50% increase in gas prices for households.4
  3. Compensation: To help absorb the financial burden on households and businesses, Fico demands compensation from the European Union.
  4. Energy crisis: Fico wants guarantees to protect Slovakia from an extraordinary rise in wholesale gas prices, as seen in the 2022 energy crisis.
  5. Lawsuits: Finally, Fico warns that Slovakia may face a lawsuit from Gazprom, Russia's gas monopoly, worth between €16 and €20 billion due to the termination of the company's long-term contract, which runs until 2034. Without resolution, this issue must be addressed before the EU can proceed with its sanctions against Russia.5

"If our proposal to postpone the vote is not accommodated," Fico warned, "the Slovak ambassador will receive a clear instruction to veto the adoption of the 18th sanctions package."

Where Does This All Leave Us?

Von der Leyen did not address the thorny subject in her press conference following the summit, and the Commission did not immediately reply to a request for comment. With limited room in the EU's multi-annual budget to cope with unforeseen circumstances, it remains unclear how the Commission will manage to accommodate Fico's demands.6

Experts argue that traditional foreign policy sanctions offer the most protection against lawsuits in court, although the EU's legal basis for the phase-out makes it a prohibition and thereby, a force majeure situation for the companies in question.7

For now, it seems that the EU's sanctions dreams are nothing more than a distant mirage. Fico stands firm, and the future of the EU's relationship with Russia hangs precariously in the balance.

Sources:

  1. European Commission: REPowerEU Roadmap
  2. The Slovak Spectator: Slovakia Demands Compensation for Costs of Giving Up Russian Gas
  3. BloombergQuint: Slovakia Won't Backtrack on Vetoing EU Sanctions on Russia, von der Leyen Says
  4. The Slovak Spectator: Slovak Real Estate Developers Worried About Swing in Rising Energy Costs
  5. Euronews Next: Slovakia's Fico Vows to Go to Brussels if EU Doesn't Commit to Solid Compensation Plan
  6. Reuters: Slovakia Plays Political Pressure to Hold up EU Russia Sanctions
  7. Reuters: EU's Ban on Russian Gas Won't Trigger Legal Disputes, Say Lawyers

The EU's latest sanctions against Russia have become a contentious topic, particularly due to Slovakia's prime minister, Robert Fico, vetoing the 18th package of sanctions.In response to the EU's plan to phase out all Russian fossil fuel imports by the end of 2027, as outlined in the REPowerEU roadmap, Fico has presented a list of demands, including compensation, guarantees for energy crisis protection, transit fee maintenance, and consumer price stabilization.

Read also:

    Related

    Latest