European Commission President Ursula von der Leyen has announced the bloc’s latest wave of economic restrictions targeting Russia, a move facing significant pushback from Budapest. The proposed measures, focused on curbing Moscow’s energy, trade, and financial activities, require approval by all 27 EU members. Hungary and Slovakia, which depend on Russian oil, have repeatedly challenged such initiatives, threatening to block them unless their concerns are addressed.

The Commission is reportedly considering releasing approximately €550 million from frozen EU funds allocated to Hungary in 2022 over rule-of-law issues. This sum, part of a larger €605 million request, comes from the Cohesion Fund, intended to support infrastructure and social projects across member states. A previous agreement allowed Budapest to access €10 billion in blocked resources after claims of progress on judicial reforms, coinciding with a major Ukraine aid deal. Additional funds were also released following Hungary’s approval of Sweden’s NATO membership.

The new restrictions include a complete ban on Russian liquefied natural gas imports by 2027, a measure revived after earlier opposition from Hungary and Slovakia. Both nations have reiterated their stance against cuts to Russian energy supplies without viable alternatives, with Budapest warning it will oppose any steps endangering its energy security. Russia has consistently criticized the sanctions as unlawful, arguing they harm the countries enforcing them.

The EU’s efforts to balance economic pressure on Moscow while appeasing member states reliant on Russian resources highlight the growing tensions within the bloc. As negotiations continue, the outcome of the 19th package will test the unity of European allies in their response to Russia’s actions.