The newspaper added that it is not yet clear whether Hungary will agree to increase the duration of sanctions against Russia from six months to three years, so that the United States will also participate in allocating funds to Kiev. The newspaper indicates that the decision must then be approved by the European Parliament, and it could be officially approved in November.
In this case, the EU’s share in the total loan granted by the G7 countries could fall from 35 billion euros to 20 billion euros. Budapest’s position will finally become clear at the EU leaders’ meeting next week.
For his part, the Hungarian Minister of Finance (as Hungary chairs the European Union Council), Mihai Varga, said yesterday, Tuesday, that Budapest does not yet support the move to freeze Moscow’s sovereign assets in the European Union for a period of 3 years, and believes that the decision regarding the timing of extending sanctions against Russia may not be possible. It is taken before the presidential elections in the United States.
The Financial Times newspaper had previously reported that the European Union had agreed to provide a new loan to Ukraine worth about $44.48 billion by the end of the year, regardless of the participation of the United States. According to her, such a step could be taken against the backdrop of Brussels’ fears that Budapest would prevent the United States from providing the necessary guarantees to participate in repaying the loan with the frozen Russian assets. The government of Hungarian Prime Minister Viktor Orban is trying to postpone the decision until the presidential elections in the United States, but the European Union must prepare an alternative now so that aid can reach Kiev by the end of the year.
The decision was supposed to be taken by a majority of EU member states and not unanimously in order to override the Hungarian veto.
In turn, Kremlin spokesman Dmitry Peskov said last July that Russia would certainly respond to the theft of its assets in Europe, and stressed that Moscow intends to legally pursue those involved in this theft. According to him, Europe took the worst path by using Russian assets to help Kyiv.
Source: TASS
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List of sanctions against Russia
EU Sanctions Against Russia: An Analysis
The European Union’s (EU) sanctions against Russia have been a topic of interest in recent years, especially given the ongoing conflict in Ukraine. The EU has been actively imposing economic sanctions on Russia in response to its military aggression against Ukraine.
The Current State of EU Sanctions
As of 2024, the EU has banned over €48 billion in goods that would have been exported to Russia and €91.2 billion from Russia to the EU, as reported by the European Commission [[1]]. These sanctions have been in place since February 2022 and have been extended until January 31, 2025 [[2]].
Recent Developments
The EU recently adopted additional sanctions in response to Russia’s military aggression against Ukraine on June 24, 2024 [[3]]. This move is part of the EU’s efforts to pressure Russia to cease its military operations in Ukraine.
Proposals for Extended Sanctions
There are currently proposals to extend the duration of sanctions against Russia from six months to three years. This move would allow the United States to participate in allocating funds to Kiev [[4]]. However, it is unclear whether Hungary will agree to this extension.
Potential Implications
If the proposed extension is approved, it would likely have significant implications for Russia’s economy. The EU’s share in the total loan granted by the G7 countries could increase, potentially leading to increased economic pressure on Russia.
Conclusion
The EU’s sanctions against Russia are a complex issue, with various countries having different opinions on the matter. The recent proposals to extend the duration of sanctions and the involvement of the United States in allocating funds to Kiev add another layer of complexity to the situation. As the situation continues to unfold, it remains to be seen whether the proposed extension will be approved and what implications this will have for Russia’s economy and the global community.
Sources:
[[1]]https://www.consilium.europa.eu/en/policies/sanctions-against-russia/sanctions-against-russia-explained/
[[2]]https://www.eunews.it/en/2024/07/22/eu-sanctions-russia-extended-2025/
[[3]]https://enterprise.gov.ie/en/publications/eu-trade-sanctions-in-response-to-situation-in-ukraine-.html
