European Union countries failed Friday to agree on fresh sanctions against Russia’s lucrative liquefied natural gas sector, according to six EU diplomats, with Germany torpedoing a deal on the eve of an international peace conference on Ukraine on Saturday.

The crux of the package was to ban countries from re-exporting Russian LNG from EU ports and financing planned Arctic and Baltic LNG terminals.

“Once upon a time, it was said that we should always blame … Hungary — and now it’s Germany,” said one diplomat familiar with discussions on the package, referring to Hungary’s habit of blocking earlier packages of sanctions.

The latest German blockage came as G7 leaders held summit talks in Italy, joined by top EU officials. They were expected to issue a strong statement on trade with China that would also criticize Beijing for providing so-called dual-use equipment that aids Russia’s war of aggression against Ukraine.

The sanctions on the table were to have been a 14th package backed by EU member countries since Russian President Vladimir Putin ordered the full-scale invasion of Ukraine in February 2022.

Berlin was worried about broadening a measure that would force EU companies to ensure their customers cannot then sell sanctioned goods on to Moscow.


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