E.U. extends sanctions and averts unfreezing Russian assets after Hungary drops opposition

Following a potentially meaningless declaration from the European Commission on Monday that the E.U. will continue talking to Kyiv about “the supply to Europe through the gas pipeline system in Ukraine,” Hungarian diplomats dropped their opposition to renewed E.U. sanctions against Russia. The rolled-over sanctions include all sector-based bans on trade and measures that immobilized Russia's central bank assets, reported Reuters.

“Well, it meant [something] to Hungary, so that mattered,” E.U. foreign policy chief Kaja Kallas told reporters when asked if the declaration on energy security “actually means anything.” 

Hungarian Prime Minister Viktor Orban has called for Europe to transition to a "sanctions-free" relationship with Russia, but U.S. President Donald Trump recently threatened more, not less, economic pressure on Moscow unless the Kremlin agrees to peace talks with Ukraine.

European officials warned that failing to extend the sanctions against Russia would have risked unfreezing Russian assets in Europe whose derived yields currently help fund aid to Ukraine.