Slovakia Lifts Veto on New EU Energy Sanctions on Russia

Slovakia will lift its veto with which it was holding up the required unanimous approval of the EU’s 18th sanctions package against Russia, Slovakia's Prime Minister Robert Fico says.Earlier this week, Fico said that Slovakia would drop its veto on the EU’s new sanctions against Russia if it receives an exemption to continue importing Russian pipeline gas for nearly another decade.On Monday, the EU failed to approve the package, which is set to include a floating oil price cap for Russia’s crude and a ban on the use of Nord Stream infrastructure, due to Slovakia’s veto.Slovakia’s Fico said early this week that the EU guarantees on its energy security after January 1, 2028, when the EU plans to have dropped all Russian gas supply, have been insufficient.Slovakia has tied dropping its veto on the sanctions package with sufficient energy security guarantees.However, in a last-minute twist, Fico is now conceding that it would accept the EU guarantees on its energy security.“All negotiation options have been exhausted, and maintaining our blocking stance would endanger our national interests,” Fico said in a video posted on Facebook.“I’m therefore instructing our representatives in the EU to lift the block and allow the 18th sanctions package to proceed.”Slovakia and Hungary have often stalled talks on sanctions packages and EU plans to ditch Russian gas, arguing their energy security would be at stake.Unlike most other EU member states, Hungary and Slovakia continue to receive Russian gas via a pipeline through Balkans.The European Union’s executive arm, the European Commission, in May unveiled a roadmap to fully end EU dependency on Russian energy. For gas, the Commission proposes to cease all imports of Russian gas by the end of 2027 by improving the transparency, monitoring, and traceability of Russian gas across the EU markets. New contracts with suppliers of Russian gas will be prevented and spot contracts (for immediate payment) will be stopped by the end of 2025, according to the roadmap.By Tsvetana Paraskova for Oilprice.com