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The trials and tribulations of finalising an EU sanctions package

By staffSeptember 23, 20268 Mins Read
The trials and tribulations of finalising an EU sanctions package
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As US President Donald Trump meets Ukrainian President Volodymyr Zelenskyy in New York on the sidelines of the United Nations General Assembly, hopefully to bring forward a peace agreement with Moscow to end Russia’s full-scale invasion, a different kind of diplomatic storm is brewing in the Belgian capital.

The big story in Brussels today is the final push to renew sanctions on 2,600 individuals and entities linked to Russia’s full-scale invasion of Ukraine — with member states standing firm to their red lines.

Just in: Ukrainian Deputy Prime Minister for EU Integration Vsevolod Chentsov told Euronews’ flagship current affairs news programme Europe Today that the whole purpose of sanctions is to crank up pressure against Russia to stop the war, and maintaining harmony on this objective is crucial.

“We are definitely against political de-listings,” he said. “In this situation, we expect the EU to keep the unity, to continue the sanctions regime, to have the rollover for the next period.” Watch.

So what happened? Deliberations on the deal stretched late into Monday night, with EU ambassadors locked away again since 8 am this morning to try and break the deadlock.

And what are the red lines? France would like to delist Russian-Uzbek billionaire Alisher Usmanov from the proposed sanctions list as part of a package that could see two French nationals released from prison in Azerbaijan.

But Latvian Prime Minister Andris Kulbergs said the unprecedented 36-month extension cannot be paved through the removal of two names. In an online statement posted late Monday night, Kulbergs said he would meet representatives from Paris and Brussels today to try to forge a way forward, but that at the moment, “Latvia cannot accept such an offer.”

The background: The Irish presidency, which runs the EU Council for six months under the bloc’s rotating presidency system, proposed a compromise to delist Usmanov and Mikhail Fridman, another Russian businessman, in exchange for the three-year renewal of the sanctions regime to avoid a similar impasse in future.

My colleague Jorge Liboreiro has been covering the sanctions package stories like a hawk. His prediction for today’s events? “High drama ‘til the end,” he said.

Return hubs: who pays? The EU is facing calls to help fund controversial offshore hubs for migrants without the right to stay in the bloc, as five countries — Austria, Denmark, Greece, Germany and The Netherlands — look to speed up plans to strike the first deals with third countries.

The mass entry of migrants into the Spanish enclave of Ceuta has catapulted the issue to the top of the political agenda, with migration also becoming a defining issue ahead of key elections in several EU member states in 2027.

The group of five is set to reconvene in Munich this Saturday on the margins of a conference which 17 EU migration ministers and the EU’s migration chief, Magnus Brunner, are expected to attend. Sources close to the capitals have told my colleague Vincenzo Genovese that it is all about accelerating the set-up of return hubs outside Europe.

“Innovative solutions”: The five countries have stayed silent on where the hubs could be established despite unofficial reports suggesting talks are ongoing with Rwanda and Uganda. But Mared Gwyn reports that at a previous meeting in Copenhagen earlier this month, a 2027 target was set for their first bilateral deal.

Under an overhaul of the EU’s migration rules approved in June, EU countries are expected to fully finance the return hubs and may also provide additional funding, commercial partnerships, or other incentives to encourage third countries to accept such agreements.

But with negotiations on the bloc’s long-term budget now in full swing, some countries are seeing an opportunity to secure funding from Brussels for what’s being described as “innovative” solutions to irregular migration

“If we decide to implement any innovative ideas, that means that Europe has to find the adequate resources,” Greece’s deputy foreign affairs minister Tasos Chatzivasileiou said, adding that the next long-term budget could “provide a solution to the problem.”

Budget bust-up: EU affairs ministers are gathering in Brussels today for a General Affairs Council meeting centred mostly on the bloc’s long-term budget, also known as the Multiannual Financial Framework (MFF).

It comes hot on the heels of European Council President António Costa wrapping up his annual tour of the capitals, during which he visited almost all of the major cities to discuss with leaders their dreams and gripes over upcoming EU programmes, such as the seven-year MFF.

An EU official close to the budget negotiations in Brussels told Euronews’ EU news chief Maria Tadeo that despite opposition from German Chancellor Friedrich Merz — as well as other frugal nations — regarding the overall spending, there is political will to get the budget negotiations finalised by the end of the year.

Berlin has publicly bristled at the Commission’s €2 trillion proposal for 2028-2034, even organising a rival get-together in August to counter Costa’s attempts to win nations over to the proposal.

As my colleague Eleonora Vasques writes, however, Dublin, which is currently chairing discussions among EU ministers on the issue, will seek to present a compromise text by mid-October.

The draft is expected to be tabled ahead of the European Council meeting in Brussels and will serve as a basis for further discussions among EU leaders during the summit. But a real deal is not foreseen before the end of the year.

Merry MFF eve! For all intents and purposes, though, journalists should be warned: expect to be working right up to Christmas for the deal to be clinched by the European Council.

How Europe’s energy shock is fuelling the far right ahead of elections

The far-right’s victory in a German regional election this weekend has offered an early warning of how Europe’s energy crisis could reshape politics ahead of major elections in France and Italy next year.

The Alternative for Germany (AfD) emerged as the strongest party in Mecklenburg-Western Pomerania on Sunday, extending a run of electoral gains that has shaken Chancellor Friedrich Merz’s governing coalition.

Its success comes as nationalist and far-right parties across Europe seek to turn soaring fuel and energy costs into an electoral weapon.

The immediate political threat is now spreading beyond Germany. France, Italy, Spain and Poland all face key elections next year, raising the stakes for governments struggling to shield voters from rising gas, diesel and petrol prices while avoiding another expensive round of energy subsidies.

Despite relief measures announced by Merz and French President Emmanuel Macron, the renewed energy squeeze is giving populist parties an unusually potent combination of grievances: household hardship, anger over climate-related taxes and regulations, and opposition to Europe’s efforts to sever its dependence on Russian energy.

Marta Pacheco explains why the energy crisis could be pushing voters further towards the right side of the political aisle.

More from our newsrooms

Ireland backs ‘ambitious’ new EU taxes as budget talks intensify

The Irish government, which is chairing member-state discussions on the EU’s long-term budget, will present an “ambitious” draft text featuring proposals for new EU taxes. Eleonora Vasques has the scoop.

13 EU countries call for ‘deep cleaning’ of European laws

Austria is leading a new alliance on regulatory simplification, pushing for a systematic review of how new rules would impact businesses and a “deep cleaning” of existing rules to be conducted during an “implementation and consolidation year.” Luca Bertuzzi has more.

Russians abroad voted eight to one against Putin’s party, defying official results

Russians voting at embassies and consulates abroad backed the liberal New People party over Vladimir Putin’s United Russia by a margin of eight to one, according to two independent exit polls conducted during this weekend’s State Duma elections. This is the opposite of official results from inside Russia, where Putin’s party took nearly 58% of the vote. Read more.

We’re also keeping an eye on

  • The first high-level debate of the United Nations General Assembly kicks off in New York, US.
  • European Commission Executive Vice-President Henna Virkkunen participates in the a youth policy dialogue titled ‘Protecting young people online’, and a G7 meeting on AI safety.
  • European Commission Executive Vice-President Teresa Ribera meets with Mike Bloomberg, former mayor of New York City.
  • European Commissioner for Environment and Water Resilience Jessika Roswall meets European Metals President Inge Hofkens in Brussels, Belgium.
  • Commissioner Roswall receives Albania’s Environment Minister Sofjan Jaupaj in Brussels, Belgium.

That’s it for today. Vincenzo Genovese, Jorge Liboreiro, Mared Gwyn Jones and Eleonora Vasques contributed to this newsletter.

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