The EU's twelfth sanctions package against Russia currently appears to be in limbo due to Austrian interventions. According to a report, the German government wants to remove Raiffeisen Bank International (RBI), which continues to do business in Russia, from Ukraine's list of “international war sponsors.” Meanwhile, the EU summit in Brussels decided to start accession negotiations with Ukraine and Moldova. Negotiations should also begin with Bosnia-Herzegovina as soon as the necessary conditions are met. Georgia becomes a candidate for EU membership.
AUSTRIA/BELGIUM/UKRAINE. In recent days, the EU has been preparing a new package of sanctions against Russia, to which almost all member states had already agreed on Tuesday night. EU ambassadors were only unable to agree on a common position due to Austrian reservations. As EU officials told APA on Wednesday, Austria is not blocking the package but has declared a “review reservation.” This means that Itamaraty and the Federal Chancellery would have the list legally examined before agreeing to the sanctions.
Raiffeisen as possible reason for Austria's reservations
The twelfth package of sanctions against Russia focuses on circumventing sanctions that have already been imposed and banning Russian diamonds. In this context, the North American daily “Politico” called into action on Wednesday night the RBI, which is still active in Russia. On Thursday, the Portal news agency also reported – with reference to “two people familiar with the situation” – that Austria was seeking to remove the RBI from the Ukrainian blacklist. Therefore, they only want to sign the sanctions package when the bank is no longer considered an “international sponsor of war”.
Ukraine wants to expose companies
Ukraine's blacklist includes companies that continue to do business in Russia after the Russian invasion and thus promote war through paying taxes. For example, you can find Nestlé, Metro, Unilever or RBI, which is the largest western bank still represented in Russia.
As Portal notes, Austria's reserve highlights the bank's “deep economic ties with Russia,” the bank's “determination to maintain its profitable business in the country” and the weakening of Western efforts to isolate Moscow. The news agency said several officials have already confirmed to Portal that they would hesitate to completely sever the decades-old relationship with Russia. It is hoped that it will still be possible to reestablish relations.
Raiffeisen's heavy withdrawal from Russia
“We think it is unfair that we are on the list,” a bank spokesperson said on Thursday. The RBI has already announced several times that it is preparing to withdraw from Russia, although this is complex. Only recently, CEO Johann Strobl announced that a split would probably not happen at the turn of the year. The bank must first exhaust its put options, as this may be the easiest route.
Schallenberg described the list as “arbitrary”
A spokesperson for the Federal Chancellery confirmed that legal documents on the EU sanctions were submitted on Tuesday. However, he declined to comment further.
Back in October, Foreign Minister Alexander Schallenberg (ÖVP) openly criticized the Ukrainian list as “arbitrary” at a ministerial meeting in Kiev, according to Portal. Thus, in recent weeks, the Austrian government has also expressed its concerns to EU representatives and diplomats about the list compiled by the Ukrainian anti-corruption authority.
EU opens accession talks with Ukraine
Shortly after the publication of the Portal report, EU Council President Charles Michel announced on Thursday evening that the EU summit in Brussels had decided to begin accession negotiations with Ukraine and Moldova. It is a “historic moment” that shows “Western Union’s credibility” and its strength, Michel said. On X (formerly Twitter) he spoke of a “sign of hope”.
Furthermore, Georgia has been granted candidate status for EU membership and talks will also begin with Bosnia-Herzegovina once the necessary conditions are met.
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