The EU’s twelfth sanctions package against Russia currently appears to be in limbo – according to senior EU diplomats, Austrian controls are to blame. Raiffeisen Bank International RBI’s involvement in Russia is likely to be the stumbling block.
Since Russia’s invasion of Ukraine began, the EU has passed 11 sanctions packages on Moscow, covering everything from energy to banking, in an effort to drain President Vladimir Putin’s war chest.
A new package would have been a good signal for Kiev
The twelfth sanctions package, which the European Commission presented to the EU countries in mid-November, must now mainly focus on measures against sanctions avoidance and also includes a ban on Russian diamonds. The hope was actually that this package would be approved by the EU countries in time for the last summit of the year next Thursday, thereby also promoting Ukraine’s possible accession to the European Union.
It would also have been a positive signal for Kiev, which is currently trying to join the EU and still depends on massive aid from abroad to drive the Russian aggressor out of the country.
Vienna slows down the process
As “Politico” now reports with reference to five EU diplomats, the draft initially failed because of Austria. An agreement was reached by EU leaders on Tuesday, the report said. But Vienna delayed the process because it wanted to first conduct “internal evaluations,” said the diplomats, whose anonymity was granted.
According to insiders, Austria wants to have Raiffeisen Bank International (RBI) removed from the Ukrainian list of “international sponsors of war”.
“I think it is unfair that we are on the list”
“We think it is unfair that we are on the list,” says a spokesperson for the bank. The RBI is having difficulty with the announced withdrawal from Russia. CEO Johann Strobl recently stated that a spin-off around the turn of the year would probably not work. The bank must first exhaust its options for a sale; that may be the easier way.
A spokesperson for the Federal Chancellery said legal documents on the EU sanctions were presented on Tuesday. He would not comment on further information. But official Austria doesn’t want to let it slide completely: “We are not against the package,” an Austrian official told Politico. “We have to check the legal aspects.” The official did not confirm whether the blockage actually has anything to do with the RBI’s business.
Schallenberg: List “random”
According to an insider, Foreign Minister Alexander Schallenberg openly criticized the list drawn up by the Ukrainian Anti-Corruption Authority as “arbitrary” during a ministerial meeting in Kiev. The government has also raised its concerns in conversations with EU representatives and diplomats in recent weeks. Representatives of the RBI met with representatives of the Ukrainian authorities. Recently, the Hungarian OTP Bank, among others, was removed from the list.
Diplomats hope for a change of heart
The delay brings back memories of a blockade by Hungary and Greece against an earlier sanctions package before the summer, when the two countries used the sanctions as political pressure to remove their companies from Ukraine’s list of “war sponsors.” The Austrian banking group Raiffeisenbank remains prominent on the list of war sponsors in Kiev.
However, diplomats were confident this would not jeopardize the package for too long. The “talks went relatively smoothly,” one diplomat said. “We are confident that we have the details of the package [am Donnerstag] can announce during the course of the day.”
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
