New EU Sanctions Package in Doubt? Slovakia Digs In on Gas Scuffle with Russia
Slovakia continues to enforce trade restrictions against Russia.
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A looming standoff threatens the EU's goal of adopting a fresh round of sanctions against Russia. Heads of pro-Kremlin governments in Budapest and Bratislava are causing ripples. Whilst Slovakian Prime Minister Fico supports additional assistance to Ukraine, unlike Hungary's Prime Minister Orban, he's unwilling to forsake Russian gas.
Economy Commission's Plan: EU Aims to Completely Halt Moscow's Gas Exports Fico forecasts dire consequences if the EU's planned complete exit from gas supply deals with Russia by January 1, 2028, becomes a reality: "Take this seriously. We have no direct access to LNG terminals. Shortages could occur, and prices may surge. RePowerEU is merely an ideological initiative," he remarked, referring to the EU's plan. Fico also brings up legal concerns, citing the EU Commission's bid to terminate Slovakia's gas supply contract with Gazprom under the guise of "force majeure." However, Fico maintains that this argument would likely fail in an international arbitration court, potentially leaving Slovakia on the hook for billions in penalties without EU covering the costs.
Politics Moscow's Focus: Munz - Russia Sees the EU as New Adversary Given its landlocked location straddling Ukraine, Slovakia is heavily dependent on Russian raw material supplies, making it unique among European nations. As such, Fico has repeatedly criticized the detrimental effects of individual EU sanctions on Slovakia. Unlike Hungary, Slovakia has so far aligned with all sanctions decisions against Russia, earning Bratislava, along with Hungary and initially the Czech Republic, an exception from the EU's overall sanctions rules. However, Slovakia's exception is reportedly set to end with the upcoming sanctions package.
Source: ntv.de, uzh/dpa
- Slovakia
- Ukraine Invasion
- Ukraine
- Russia
- Brussels
- Gazprom
- Gas
- Gas Supplies
In-Depth:Although Slovakia initially blocked the sanctions package during the EU Foreign Affairs Council meeting, citing concerns about the proposed ban on Russian gas and oil imports and their impact on energy security and the economy, Slovakia's stance isn't an outright rejection, but rather a cautious position demanding guarantees and support from the EU to mitigate the potential harm, including addressing potential arbitration risks that could cost Slovakia up to €20 billion.
The immediate result is a stalled adoption process of the 18th sanctions package, stirring uncertainty about its ultimate approval, pending negotiations aimed at addressing Slovakia's energy and economic concerns.
The economic commission's plan to completely halt Moscow's gas exports by 2028 raises concerns for Slovakia's Prime Minister Fico, who anticipates potential gas shortages and price surges if the plan is implemented. Fico also questions the legality of the EU Commission's attempt to terminate Slovakia's gas supply contract with Gazprom under the guise of "force majeure," stating that such an argument might fail in an international arbitration court, potentially leaving Slovakia with hefty penalties. Meanwhile, the political implications reveal that Moscow views the EU as a new adversary, with Slovakia, due to its unique dependence on Russian raw material supplies, playing a significant role in this dynamic.
