Germany under fire: Blocking new Russia sanctions jolts EU unity

"Deutsche Welle," citing the German newspaper Süddeutsche Zeitung, notes that since the beginning of the war in Ukraine, Hungary has stalled negotiations on tougher sanctions against Moscow. However, Germany is now blocking the new package of sanctions.

According to media reports, on Wednesday, at a meeting of ambassadors from 27 EU countries, no agreement could be reached, mainly due to opposition from Germany.

Reports state that Berlin is currently under significant scrutiny. One EU diplomat stated, "We are at a point where the Hungarians can accept these sanctions, but Germany still rejects them." Moreover, another representative criticized the German government for "systematically weakening" sanctions against Russia, calling it "more than surprising."

German media report that Berlin is particularly concerned about several measures aimed at more effectively preventing Russia from circumventing the sanctions. For instance, Russia can import many banned products from the EU via third countries such as Turkey or Kazakhstan.

"SZ" reminds that the so-called re-export of sanctioned goods via third countries is prohibited if these products are related to the war. This applies not only to weapons and ammunition but also to electronic components. Despite this ban, such cases occur, as confirmed by fragments of Russian weapons found in Ukraine, according to "Deutsche Welle."

The 14th package of sanctions is expected to contain a "tougher 'No Russia' clause." According to the draft, EU companies must commit their foreign subsidiaries to stipulate in business contracts that their goods cannot be resold from a third country to Russia. These companies will also be responsible for monitoring and enforcing these agreements under the threat of penalties.

Media point out that adopting such regulations would mean significant interference in the private sector, including greater administrative and documentation efforts. Germany argues that the costs of the new regulations would exceed the benefits, and domestic companies would suffer more than the Russian economy. However, Berlin stands alone in this.

The German press agency DPA reports that the issue of tightening sanctions is causing sharp disagreements within Olaf Scholz's government. The Ministry of Foreign Affairs considers the Chancellor's Office's reservations about the sanctions package problematic and harmful to Germany's image, reports Deutsche Welle.

DPA also quotes an EU official who indicated that recently, it seems that Germany is the new Hungary. Meanwhile, European Commission President Ursula von der Leyen said she expects a quick agreement.