Austria imposed a last-minute legal brake, dubbed a “study reserve,” on the EU’s 12th package of sanctions against Russia on Friday morning, EUobserver reported.
Vienna made the move as it initially wanted Ukraine to remove Austrian lender Raiffeisen Bank from the list of war sponsors.
However, under a compromise between Vienna and Kyiv on Saturday, the bank was temporarily “removed” from Ukraine’s blacklist pending “bilateral consultations involving representatives of the European Commission.”
By the end of 2023, the bank will have to present a detailed plan with phased timelines and financial calculations for leaving the Russian market in 2024. And if its plan turns out to be bogus, it will be put back on Ukraine’s list as before.
Saturday’s agreement helps Ukraine by involving the EU Commission, which makes it harder for Vienna and Raiffeisen to not fulfil promises or put undue pressure on Kyiv.
Hungarian Prime Minister Viktor Orbán also used his veto of EU sanctions in June to force Kyiv to fully delist Hungarian OTP Bank, but without any conditions.
The EU’s 12th package of sanctions against Russia will be in effect for at least six months after they come into force next week, lessening Austria’s impact. The Russian sanctions include a ban on diamond imports, exports of high-tech goods and blacklisting of Russian mercenaries.
The Union also plans to use frozen Russian assets to fund Ukraine’s reconstruction. However, an internal EU document on the scheme expresses concern that Russia will respond with “the illegal seizing or confiscation of assets,” belonging to European organisations.
Earlier this year, the Kremlin appropriated the Russian plants of French food manufacturer Danone and Danish brewer Carlsberg. According to Yale University in the US, there are dozens of other EU companies still operating in Russia that could be affected by Moscow.
Any business of foreign investors in Russia could face being taken over by the government without any compensation.
As of today, 18 EU firms are listed as sponsors of the war in Ukraine.
