EU discusses extension of sanctions against Russia for up to 36 months

In June, the leaders of the Group of Seven countries agreed on a $50 billion loan to Ukraine secured by frozen Russian state assets. However, the process is moving slowly.

This was reported by RBC-Ukraine with reference to the Financial Times.

Washington demands ironclad guarantees that Russian assets, most of which are frozen in the EU, will remain blocked until Russia pays reparations to circumvent the need for Congressional approval for the allocation of funds.

Today, the European Commission will present options for extending sanctions against Russia for 36 months or indefinitely for discussion with EU ambassadors. However, the decision requires the consent of all 27 member states.

Hungary, in particular, may use this issue as a lever to influence the distribution of portfolios in the new European Commission board, which has caused difficulties in the past.

The EU has to approve the loan proposals by the end of the year, otherwise Hungary could veto them. Time is limited, as the next tranche of the IMF loan to Ukraine also depends on receiving guarantees of sufficient funding to cover Ukraine's fiscal deficit.

Some EU officials believe that US fears about the extension of sanctions may be exaggerated, as sanctions have been in place since 2014 and have always been extended. However, Hungary remains a key player in this process, which complicates the situation.

Author - Olena Madiak, 13/09/2024