The EU is confronting a collapse in backing for fresh sanctions against Russia, as national capitals refuse measures that could harm their corporate champions, diplomats warned. A wave of vetoes from Greece, France, Italy, Germany, Austria and Portugal has stalled the latest package that Brussels drafted to curb Moscow’s war finance.

Since Russia’s full‑scale invasion in 2022, the bloc has imposed 20 sanction packages, tightening controls on exports, finance and hydrocarbons. Yet the need for unanimous approval means any veto can stall the process, and the past week saw four days of ambassadorial talks with no consensus, eroding the moral imperative that once drove the effort.

Greece demands carve‑outs for LNG transport to third countries, citing the impact on shipping billionaire George Prokopiou and his Dynagas fleet; the tanker Fedor Litke has carried Russian gas worth $4bn, and Dynagas’s cargo totals more than 30mn tonnes, worth $24bn; Portugal and Germany insist on removing a Russian fish ban to protect local processors; France and Italy want a softened visa restriction on Russian soldiers; Austria seeks the unfreezing of €2bn in assets tied to Raiffeisen Bank.

The backlash is hitting European firms that suffered early‑war losses—Carlsberg and Fortum reported billions in hit from seized assets—while capitals argue that sanctions must be calibrated to avoid hurting their own economies. The EU now teeters on the brink, with each new package risking becoming a hollow box of loopholes.