Hungary blocks the newest EU sanctions package against Russia

But Hungary is not alone in that regard because Budapest won an unlikely ally in Athens. Politico wrote that the new EU sanctions against Russia are “stuck in limbo over Greek-Hungary protest.”

Five EU diplomats shared information about the latest sanctions and the Hungarian-Greek opposition to the paper. The 11th sanctions package is the first member of a new generation of sanctions. It concerns countries helping Moscow reach its war efforts in Ukraine or avoid the other ten trade sanction packages.

However, Hungary and Greece will baulk that process if Ukraine does not remove their companies from the list of war sponsors. In the case of Hungary, that is the OTP Bank, the biggest Hungarian-owned financial institution and leading bank in Central Europe. Athens and Budapest will use the new sanctions package as political leverage “to get their companies off Ukraine’s list.”

That is why the German foreign minister, Annalena Baerbock criticised her Hungarian counterpart in a summit of foreign ministers this week in Brussels. She said OTP Bank supported Putin’s war efforts by, e.g. giving loans to the soldiers. The German FM cited unspecified reports, but Péter Szijjártó, Hungary’s foreign minister, rejected the claims by quoting an OTP announcement. We wrote about that clash in THIS article. At a Wednesday meeting of EU ambassadors, however, Greece was at the forefront of resistance.

“Greece reiterated that should there be concrete evidence of violation of sanctions, these should be brought to the attention of the member states concerned, at the technical level, so that this be adequately investigated and then due action will be taken”, Politico cited an EU diplomat. Joseph Borell promised to work through the problems concerning the Ukrainian list.

EU diplomats said EU member states are frustrated with Hungary’s pro-Russia and pro-China stance. Hungary does not only baulk the 11th sanctions package. It also blocks the eighth money reimbursement of the EU for Kyiv until the OTP issue is not solved. We wrote about that HERE.

EU diplomats cleared other issues needed to be solved concerning the 11th sanctions package. However, they do not start negotiations about them until Hungary and Greece veto. For example, Germany worries that naming and shaming other countries can hurt diplomatic relations.