EU vows to maintain Russia sanctions after US pivot on fuel

3 min read
EU vows to maintain Russia sanctions after US pivot on fuel
PrimeXBT Editorial Team
Reviewed by PrimeXBT

EU leaders pledged to keep sanctions on Russia and to keep backing Ukraine after Washington signalled it would ease restrictions on Russian fuel. Brussels is preparing a 22nd sanctions package, even as European governments weigh rising energy prices at home.

EU leaders vowed to maintain sanctions on Russia after Washington signalled it would ease restrictions on Russian fuel to curb global diesel prices. The pledge came as leaders gathered in Brussels on Friday to discuss Kyiv's needs and EU support for 2027.

According to the Financial Times, European Commission president Ursula von der Leyen said alongside Ukrainian President Volodymyr Zelenskyy: "We will not lift any sanctions unless Russia stops the war." She added that the bloc was preparing the 22nd package of restrictions since Vladimir Putin's full-scale invasion of Ukraine in 2022.

Washington eases pressure on Moscow

Donald Trump has eased pressure on Moscow in recent days to bring down fuel prices, while pressing Kyiv to halt attacks on Russian energy infrastructure. The surge in energy prices, driven by the US war with Iran, has become a major concern for the White House ahead of the November 3 midterm elections.

The US is also considering lifting sanctions on some "shadow fleet" tankers, according to people familiar with the matter, and will temporarily lift sanctions on Russian diesel. Kyiv and other European capitals have criticised these moves.

An energy ceasefire that Trump declared last Sunday proved shortlived. Ukraine suspended strikes on Russian oil refineries, but Russia kept attacking Ukrainian energy infrastructure, and four days later Zelenskyy told the FT that Kyiv was abandoning the truce.

Funding gap and divisions in Europe

The European Commission estimates that Ukraine needs an additional €70bn in 2027 between budget and military support, and is working on ways to fill two-thirds of that gap. On Thursday, the Ukrainian parliament passed several laws meeting EU conditions to unlock about €34bn in EU funding.

Zelenskyy urged leaders to step up military and financial support, particularly air-defence systems, ahead of Ukraine's fourth winter since the full-scale invasion. Yet there is growing fatigue among European leaders about the cost of supporting Kyiv. Marine Le Pen, the far-right frontrunner in the French presidential race, said she would cut financial aid.

European Council president António Costa said it is no time to relieve Russian sanctions and called for more pressure to bring Russia to the negotiating table.

Source: Financial Times

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