EU fails to pass 20th Russia sanctions package on war’s fourth anniversary

The European Union (EU) has failed to reach agreement on its 20th sanctions package against Moscow, after Hungary opposed the measures over oil transit disputes involving Ukraine.

The proposed package included a full maritime services ban on Russian crude oil, replacing the existing price cap mechanism. The EU had hoped to secure approval by 24 February, marking four years since the start of the war in Ukraine.

The impasse has also delayed the payout of the EU’s €90Bn loan package for Ukraine, which was agreed in December.

“This is a setback and a message we did not want to send today, but the work continues,” EU foreign policy chief Kaja Kallas said at a press conference following the Foreign Affairs Council.

Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó, warned on 22 February that Budapest would block the sanctions package. “Until Ukraine resumes oil transit to Hungary and Slovakia via the Druzhba pipeline, we will not allow decisions important to Kyiv to move forward,” he wrote on X.

Slovak Prime Minister Robert Fico also signalled potential retaliation, stating over the weekend that if Ukraine does not resume oil supplies to Slovakia, he would ask the relevant Slovak companies to halt emergency electricity exports to Kyiv.

Responding to Hungary’s position, Ms Kallas said the situation was not unprecedented. “We have seen before that we are able to achieve solutions together. We are conducting outreach at different levels to our Hungarian and Slovak colleagues to move forward with this package,” she said.

Shipments via the Druzhba pipeline have been disrupted since late January. Ukraine attributes the halt to a Russian drone strike. Mr Szijjártó has claimed there is “no technical or operational reason preventing the restart of oil transit to Hungary and Slovakia” through the pipeline.

Shipping implications

From a maritime perspective, the most significant element of the proposed package is the planned full ban on maritime services for Russian crude exports. This would effectively replace the current price cap regime with a broader prohibition.

Analysts told Riviera earlier this month that, if implemented, the measures would likely prompt most EU-linked tonnage to gradually withdraw from Russian trades due to compliance complexity and reputational risk.

If coordinated with the G7, such a move could push Russian crude exports almost entirely onto the so-called shadow fleet.