Despite pressure from Europe, the Hungarian and Greek couple are ready to block the latest package of sanctions against Russia, in return for the condition that Ukraine remove the names of their businesses from the List of "Sponsors of Military Conflict" listed by Kiev.
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| The 11th package of sanctions aimed at Russia: Again tripping the 'rock' EU had to turn the car around? revealed the fate of frozen Russian assets. (Source: YouTube) |
TV RTBF According to a report from Belgium, Greece and Hungary officially took action to block the latest draft of the 11th package of sanctions against Russia, at a meeting of the EU's Permanent Representative Committee. Accordingly, Budapest and Athens set the condition of removing some of their companies from the list of those who help Russia "circumvent the law" to bypass Western sanctions, before they agree to a new sanctions package.
As revealed by the newspaper Politico In the European edition, discussion of the latest sanctions package against Russia has been adjourned for a week until June 14. However, so far, the Permanent Representatives of European countries are still in the process of finalizing and resolving "sensitive" disagreements.
Europe will do it its way?
European Commission (EC) President Ursula von der Leyen and EU High Commissioner for Foreign Affairs and Security Policy Josep Borrell have repeatedly stated that the 11th package of sanctions will focus on tightening sanctions enforcement mechanisms, as part of a campaign to thwart Russia's attempt to circumvent the blockade. In an unprecedented step, the 11th package of sanctions could also target third countries - believed to be helping Moscow circumvent trade embargoes from the EU.
However, so far, not only Hungary and Greece have decided to block the 11th package of sanctions with a separate reason. Sources told Politico that, at a meeting in Brussels, Germany and France voiced concern that the containment measures being discussed could damage diplomatic relations, in particular negatively impact Berlin, Paris's relations with Beijing and Ankara.
In late May, several European media and diplomatic sources reported that the initial draft of EC sanctions had been rejected by EU member states and sent back for revision due to concerns that such measures would only isolate the EU in the world. In light of these concerns, the original proposals made by the EC into the new sanctions package have been revised.
This new development is also in the context of a Doctrine of Economic Security of the EU taking shape. Europe fears it could be squeezed between the two world powers, as tensions between the US and China, also its two biggest trading partners, continue to escalate.
The EU wants to stop reacting to decisions from Washington and Beijing, and start acting on its own. Brussels hopes to achieve that through the EU's first Economic Security Doctrine.
According to observers, EC President Ursula von der Leyen will announce the EU's Economic Security Strategy on June 20 - the same time the leaders of EU member states meet at the EU summit on June 6-29. It follows last month's G30 meeting, where "risk reduction" from China was a key theme.
The EU is said to be in an uncomfortable geopolitical position - at the heart of the still-escalating tensions between the world's two largest economies. Despite being an American ally, Brussels wants to continue talking — and trading — with China. But they also recognize that Europe needs to mitigate risks, especially after supply chain shocks during the Covid-19 pandemic and the conflict in Ukraine have exposed the "excessive costs" of relying too much economically on an authoritarian regime.
Will Russian assets be used to rebuild Ukraine?
In a development related to Russia-EU relations, citing data from the EC, the total value of Russian private assets frozen in the EU due to sanctions has reached 24,1 billion euros (about 25,9 billion USD), the German newspaper World on Sunday revealed at the end of May.
The German newspaper also reported that Russia's frozen private assets increased from 18,9 billion euros in December 12 to 2022 billion euros in May 24,1. At the same time, it added that about 5 individuals and 2023 companies from Russia are currently under EU sanctions.
Since the start of the military operation in Ukraine in February 2, almost half of Russia's foreign currency reserves have been sanctioned, amounting to about $2022 billion - as part of a draconian Western sanctions campaign to weaken Moscow.
This news comes after EC lawyers concluded that the assets of the Central Bank of Russia, which had been frozen by the West, would have to be returned to Moscow after the conflict in Ukraine ended, according to reports. The World Germany last month.
The newspaper cited an unpublished EC document, which states that the assets of the Central Bank of Russia are "untouchable because so far, when the conflict is over, they will have to be returned to their owners - here Russia". EC experts have come to "the above official conclusion", although they have previously revealed other calculations and said "there is political will, but the legal barrier is very high".
The Council of Europe previously said it had raised requests from the EC about the possibility of using Russian assets to rebuild Ukraine.
However, right from the moment that idea appeared, in October 10, German Chancellor Olaf Scholz said that the West's use of frozen Russian assets to help rebuild Ukraine is a complex legal issue that will require the EU to overcome many legal hurdles before making a decision.
In a new report, Politico recently Quoting Jim O'Brien, head of the State Department's Office of Sanctions Coordination, as stated that the number of shipments of microchips and critical electronic components "landing in Russia has returned to pre-Russian-Ukrainian conflict levels. "Despite the West's efforts to prevent Moscow from circumventing the law, Russia is improving its ability to resist sanctions, Politico emphasize.
