Slovakia maintains veto on new package of EU sanctions against Russia

Slovakia confirmed on Wednesday that it would for the time being maintain its veto on the new package of sanctions that the European Union intends to impose on Russia in response to the invasion of Ukraine.

The veto was reaffirmed during a meeting of ambassadors in Brussels, where the sanctions were put on the table for approval and once again blocked, diplomatic sources told Euronews.

The package, which is ready to go after weeks of negotiations, targets Russia’s financial and energy sectors, including the Nord Stream pipelines. A move to lower the price cap on Russian crude oil is uncertain to succeed due to the White House’s reluctance.

The diplomatic impasse came as Moscow launched a new record-breaking barrage of drones and missiles against Ukrainian cities, injecting a new sense of urgency among member states to tighten the screws on the Kremlin’s high-intensity war machine.

Slovakia has no objection to the economic restrictions per se; its opposition relates to an entirely different matter: the proposed phase-out of all Russian fossil fuels by the end of 2027.

The European Commission unveiled the roadmap in May and presented the draft legislation in June, based on gradual bans on short-term and long-term gas contracts.

As a landlocked country, Slovakia has vociferously protested the plan, warning it will raise prices for consumers, weaken competitiveness and endanger energy security.

Since the phase-out is subject to a qualified majority, Bratislava has resorted to sanctions, which require unanimity, to extract concessions from Brussels.

During an EU summit last month, Slovak Prime Minister Robert Fico posted a video message with demands for financial compensation, without naming a concrete number.

“This will harm us, unless an agreement is reached with the European Commission that would compensate us for all the damage this proposal might cause,” Fico said.

The prime minister said his country risked facing a lawsuit from Gazprom, Russia’s gas monopoly, worth between €16 and €20 billion due to the termination of its long-term contract, which runs until 2034. The Commission argues the gas bans will act as “force majeure” in court and shield governments and companies against damages.

From Brussels to Bratislava

Fico’s ultimatum sped up bilateral talks between Brussels and Bratislava.

Last week, the Commission sent an expert mission to Slovakia to meet with representatives from the government, industry and the energy sector. The discussion focused on possible avenues to diversify the country’s energy mix away from Russia, strengthen connections to neighbouring countries and mitigate price volatility.

Denisa Saková, Slovakia’s deputy prime minister and minister for the economy, struck a positive note, hailing the meeting as an “important step forward towards finding solutions” and promising to continue a “constructive approach” with the Commission.

But neither side indicated a breakthrough had been reached, prolonging the suspense.

It is unclear if Fico’s demand for financial compensation remains on the table and how relevant it is for the negotiations. The EU budget is notoriously strained and has little space to accommodate out-of-the-blue requests.

Mindful of this, Brussels has so far refrained from pledging any fresh money.

“We’re not negotiating on specific new subsidies or anything like that, but we are helping to make sure that the supply of both oil and gas for Slovakia (…) will be steady,” Dan Jørgensen, the European Commissioner for Energy, said last week in Aarhus, Denmark.

“I understand why Slovakia is worried, and we are doing everything we can to help,” he went on. “We are convinced that we can, also by working with neighbouring countries, find solutions so that there will certainly not be any security supply problems, but also that we can keep the prices down.”

Diplomats are still hopeful that a compromise can be reached in the coming days. A new meeting of ambassadors is scheduled for Friday in anticipation of a meeting of foreign affairs ministers on Tuesday next week.