The European Union may resort to introducing capital controls and tariffs on Russian goods if Hungarian leader Viktor Orban's team blocks the continuation of EU economic sanctions against Russia.
Points of attention
- The European Commission has suggested transferring frozen Russian state assets to another legal basis to avoid a Hungarian veto.
- Despite Orban's position, the EU remains firm in its stance against Russia and is ready to implement necessary measures to uphold economic sanctions.
Orban and Russia will not be able to outwit the EU
According to journalists, the European Commission has already told the bloc's members that a significant part of the sanctions, including 200 billion euros in frozen Russian state assets, could be transferred to another legal basis.
This is what will make it possible to avoid a veto from Hungary.
Media insiders say that capital controls will help prevent cash from flowing into Russia. Tariffs could be an additional blow.
Potential measures also include import bans and price caps in sectors such as energy. These alternative measures would not require the unanimous approval of all 27 EU member states needed to extend sanctions.
It is also worth noting that during the meeting of all 27 EU ambassadors on Monday, May 12, Viktor Orban's team did not raise any serious objections to the new sanctions package.
According to preliminary data, the 17th package, targeting companies in China and other countries that help Russia circumvent sanctions, will be approved on Wednesday, May 14, and officially implemented early next week.
