Slovakia Demands €16 Billion Compensation to Lift EU Sanctions Veto

Bratislava, Slovakia – Slovak Prime Minister Robert Fico has declared that his country will block the European Union's proposed 18th package of sanctions against Moscow unless the European Commission guarantees compensation for potential economic damage. The core of Slovakia's concern stems from the EU's separate plan to cease Russian gas imports by January 2028, a move Fico argues could trigger a substantial lawsuit from Russia's Gazprom.

Fico's demand is rooted in the potential financial repercussions for Slovakia, a landlocked nation heavily reliant on Russian energy. The Prime Minister stated that his country faces a risk of a lawsuit from Gazprom, Russia's state-owned gas monopoly, estimated to be between €16 billion and €20 billion, due to the termination of a long-term contract that extends until 2034. "Slovakia will block the new 18th sanctions package against Moscow if the European Commission does not guarantee compensation for potential damage from the planned refusal to import Russian gas," Fico announced.

The diplomatic impasse highlights a strategic leverage point for Slovakia within the EU. While new sanctions packages require unanimous approval from all member states, the proposed phase-out of Russian gas can pass with a qualified majority vote. By withholding consent for the sanctions, Bratislava aims to secure concessions regarding the energy transition, ensuring its energy security and mitigating economic fallout.

Negotiations between Brussels and Bratislava are ongoing, with Fico aiming for a resolution by Tuesday, July 15, when EU foreign ministers are scheduled to meet. European Commissioner for Energy Dan Jørgensen has indicated that the EU is working to ensure a steady supply and stable prices for Slovakia but has refrained from promising new subsidies. Slovakia has been diversifying its energy sources, but still relies on Russian gas delivered via the TurkStream pipeline and Hungary, following Ukraine's halt of Russian gas transit through its territory at the end of 2024.

Fico's stance has drawn criticism from some EU partners and domestic opposition, who accuse him of using the sanctions as "blackmail" and question the government's energy policy. Opposition figures argue that Slovakia already faces high gas prices compared to neighbors who have diversified away from Russian supplies. The outcome of these high-stakes negotiations will determine the approval of the next round of EU sanctions and the future of Slovakia's energy landscape.