Europe’s Push for Tougher Sanctions on Russia Faces Political Resistance

The European Union is moving toward another round of punitive economic measures against Moscow, with a proposal to cut 15 additional Russian banks from the SWIFT international financial messaging system, according to officials familiar with the discussions. The move, part of the bloc’s 16th sanctions package since Russia’s full-scale invasion of Ukraine in February 2022, signals an effort to tighten financial pressure on the Kremlin as the war nears its third anniversary.

The proposed measures, first reported by Bloomberg, include a phased ban on Russian aluminum imports and restrictions on more than 70 oil tankers accused of circumventing Western-imposed price caps on Russian crude. But as with previous sanctions, the package will require unanimous approval from all 27 member states—a hurdle that has proven difficult to clear, particularly given Hungary’s track record of obstructing harsher penalties against Moscow.

Officials involved in the discussions declined to name the banks targeted for exclusion from SWIFT, but the move would represent a further escalation of financial isolation for Russia. The EU, along with the United States and Britain, severed Russia’s largest banks from the SWIFT system in early 2022, effectively cutting them off from much of the global financial network. Since then, Moscow has sought to insulate itself from such restrictions, developing a domestic alternative known as the System for Transfer of Financial Messages (SPFS).

While SPFS has kept Russia’s banking system functional, its effectiveness on the international stage remains limited. Last summer, as part of its 14th sanctions package, the EU banned European firms from connecting to the Russian system and prohibited transactions with foreign entities using SPFS outside of Russia. This latest round of restrictions could further weaken Moscow’s ability to conduct cross-border financial transactions.

The sanctions debate comes at a pivotal moment for Europe. The war in Ukraine has entered a grinding phase, with Kyiv facing ammunition shortages and wavering Western support. The U.S. Congress has struggled to approve additional aid for Ukraine, while European leaders are attempting to bridge gaps in their own funding commitments.

Adding to the complexity is Hungary’s opposition. Budapest has repeatedly pushed back against sanctions, citing concerns over energy security and economic stability. Just last week, Hungarian officials reportedly linked their stance on extending existing sanctions to negotiations over gas transit agreements, demanding assurances that their country’s energy supply would not be disrupted. In the end, Hungary agreed not to block the renewal of existing restrictions in exchange for such guarantees.

For Brussels, the latest sanctions package is not just about financial pressure—it is also about maintaining unity. EU leaders are keen to show they remain committed to supporting Ukraine, particularly as the war grinds on with no clear resolution in sight. Yet, with each new package of sanctions, the challenge of securing consensus among member states grows more difficult.

Whether this latest round of measures will move forward remains uncertain. But with the third anniversary of the invasion approaching, European officials appear determined to send another signal to Moscow: that the economic squeeze on Russia is far from over.