Slovakia Blocks New EU Sanctions Package

On June 28, Slovak Prime Minister Robert Fico vetoed the EU’s 18th sanctions package against Russia and refused to meet Ukrainian President Volodymyr Zelensky. This marked a dramatic but calculated move in an already tense EU summit where sanctions had been nearly finalized. Fico’s justification hinged on Slovakia’s heavy reliance on Russian gas and the risk of €16–20 billion in legal claims from Gazprom, should Slovakia end its gas contracts prematurely under EU mandates.


His demand for financial guarantees as a condition for supporting sanctions is not out of character—Fico has steadily distanced Slovakia from EU orthodoxy since his 2023 return to power—but the aggressive diplomatic tone and refusal to meet Zelensky escalate tensions. EU Commission President Ursula von der Leyen has pushed back, asserting legal protections under RePowerEU but offered no immediate concessions.


French President Emmanuel Macron emphasized unity but didn’t directly confront Fico. The standoff delays sanctions implementation and reveals deeper fractures within the EU’s foreign policy machinery. If unresolved, this could embolden other dissenters, weaken sanctions enforcement, and strain regional unity at a critical juncture in the Russia-Ukraine conflict.

Political Effects

Financial Effects

Economic Effects

Political Effects

Financial Effects

Economic Effects

Base Case: Tactical Concession and Sanctions Advance (60%)

The most likely outcome sees the European Commission crafting a narrow agreement with Slovakia—possibly including a written assurance that existing contracts fall under RePowerEU’s “force majeure” clause, reducing the risk of Gazprom litigation. In exchange, Fico allows the sanctions package to proceed, possibly with slight delays or minor adjustments. This preserves EU unity in form while setting a quiet precedent for future side-deals with dissenting states. Slovakia avoids full isolation, and Brussels avoids a public policy fracture. However, this scenario also entrenches a growing trend of transactional policymaking within the EU, making future sanctions rounds more susceptible to national veto bargaining.


Upside Case: Strategic Realignment and Renewed EU Unity (15%)

Under this more optimistic trajectory, Fico, facing domestic protests and mounting diplomatic isolation, softens his stance without extracting major concessions. A high-level political dialogue—potentially mediated by Germany or France—persuades Bratislava to align with broader EU interests. In this case, not only does the 18th sanctions package pass intact, but the episode triggers an EU-wide review of veto mechanisms and builds momentum for sanctions reform. Public backlash at home marginalizes Fico’s coalition, creating space for centrist or pro-EU parties to regain momentum ahead of future elections. Ukraine, meanwhile, benefits from renewed regional support and closer policy alignment with its neighbors.


Downside Case: Prolonged Blockade and Policy Erosion (25%)

In the most adverse scenario, Fico doubles down—potentially joined by Hungary—and refuses all sanctions progress unless Slovakia receives substantial financial guarantees. Brussels resists setting such a precedent, creating a long-term impasse. This delays or dilutes future sanctions, emboldens other populist leaders, and fractures the perception of EU unity on Ukraine. Diplomatically, Kyiv begins to bypass Slovakia altogether, while NATO and the EU lose traction in Central Europe. Domestically, Fico leverages the confrontation to boost his nationalist narrative, intensifying polarization and making future EU negotiations even more volatile. The cost: weakened sanctions credibility and strategic drift within the EU bloc.

Monday, June 30, 2025