Hungary has withdrawn its veto, allowing the European Union to renew sanctions on more than 2,400 individuals and entities, mostly from Russia, just two days before the measures were set to expire.
The breakthrough came on Friday morning, following days of deadlock and failed attempts at consensus among EU ambassadors.
The sanctions—imposed in response to Russia’s full-scale invasion of Ukraine—were due to expire by midnight Saturday, and required unanimous approval for renewal.
Behind-the-Scenes Negotiations
Budapest had held up the renewal process, demanding the removal of certain names from the EU’s sanctions blacklist. After intense negotiations, EU diplomats agreed to remove four individuals, three of whom were reportedly part of Hungary’s demands:
Gulbahor Ismailova, sister of oligarch Alisher Usmanov
Viatcheslav Moshe Kantor, oligarch
Mikhail Degtyaryov, Russia's sports minister
Vladimir Rashevsky, businessman (removed due to “weak legal case”)
In addition, three deceased individuals were also taken off the list.
“They came to their senses, I guess,” a senior EU diplomat told Euronews. “They realised siding with Putin is not the best course of action.”
Repeated Obstruction from Budapest
This is the second time in three months that Prime Minister Viktor Orbán’s government has threatened the EU’s sanctions regime. In January, Hungary objected to broader sectoral sanctions, ultimately relenting after receiving a non-binding statement on energy security.
This time, the dispute centered on the blacklist of sanctioned individuals and organizations, which includes Russian government officials, oligarchs, military commanders, media figures, and Wagner Group mercenaries, as well as hundreds of companies in key Russian industries.
The sanctions include asset freezes and travel bans. Among those targeted are President Vladimir Putin and Foreign Minister Sergey Lavrov.
Orbán’s Divergent Position on Ukraine
Hungary’s government has consistently voiced skepticism over the EU’s approach to Ukraine, advocating for a reassessment of its stance in light of Donald Trump’s return to office and his stated efforts to negotiate a peace deal.
During a recent EU summit, Orbán blocked joint conclusions on Ukraine, leaving the remaining 26 member states to issue a separate “extract” without Hungary’s signature.
“Hungary has a different strategic approach on Ukraine,” said European Council President António Costa. “That means that Hungary is isolated among the 27.”
Orbán responded: “The European Union has isolated itself from the US, China, and Russia because of the sanction policy. So if someone is isolated here, it’s the EU.”
Broader Diplomatic Context
The sanctions standoff came as US and Ukrainian officials announced progress in their own negotiations, with Kyiv offering a 30-day ceasefire and Washington lifting its pause on military assistance and intelligence-sharing.
“Ball is in Russia’s court,” said U.S. Secretary of State Marco Rubio.
Putin responded positively in principle, but asked for “nuances” to be clarified—suggesting Ukraine should halt arms imports during any ceasefire.
Meanwhile, the European Commission has already begun work on a 17th package of sanctions against Russia.
