EU fails to win Slovakia's backing for new Russia sanctions

By Kate Abnett and Jan Lopatka

BRUSSELS/PRAGUE (Reuters) -The European Union failed to approve a new package of sanctions against Russia on Tuesday, as Slovakia demanded more guarantees that it would not be harmed by a separate EU plan to phase out Russian gas.

The European Commission, the EU's executive arm, had said in a letter seen by Reuters and later released by Slovak Prime Minister Robert Fico's office that it would work to address Slovakia's concerns, attempting to unlock a deal on the EU sanctions against Russia over its invasion of Ukraine.

Slovakia's representative at a meeting of EU foreign ministers on Tuesday was tasked with requesting a delay to a planned vote on the sanctions, Fico said in a statement.

"The government coalition rejects the imbecile proposal of the European Commission to stop the flow of Russian gas from 2028," Fico said.

"However, it is ready to negotiate guarantees that will provide Slovakia with a certain comfort in gas supplies after 2028."

EU foreign policy chief Kaja Kallas, speaking after the foreign ministers' meeting, said she was "really sad" the sanctions did not get approved, adding that "the ball is in Slovakia's court". She added she was hopeful a deal on the sanctions could be reached on Wednesday.

Slovakia has been blocking the latest sanctions package - which requires unanimous approval from EU member states - until its concerns are addressed over an EU proposal to phase out imports of Russian gas by January 1, 2028.

Slovakia, which continues to import Russian energy and often takes pro-Russian views on Ukraine, argues that quitting Russian gas could cause shortages, raise prices and transit fees, and lead to damage claims from Russian supplier Gazprom.

BID FOR EXEMPTION

In his statement calling for a delay on the sanctions vote, Fico blamed Slovak opposition parties for labelling EU proposals as insufficient.

However, the largest Slovak opposition party has backed the EU approach to sanctions against Russia and criticised Fico's government on Tuesday for not diversifying energy supplies away from Russia already, as others in the EU have done.

Slovakia has warned of the potential legal costs of breaking its gas contract with Gazprom, and Fico added the best solution would be an exemption in the Russian energy phase-out for Slovakia to allow it to fulfill its contract running until 2034.

The Commission, in its letter, said it would stand ready to intervene if needed during potential litigation. But it did not offer an exemption.

According to the letter, the Commission will clarify how an "emergency break" can be triggered if gas prices spike because of scarce supply during the Russian gas phase-out.

Brussels will also develop a solution that aims to reduce the costs of cross-border tariffs on gas and oil for Slovakia, said the letter, which was dated Tuesday.

The EU's proposals to ban Russian gas by 2028 - with a gradual phase out beginning next year - need support from a reinforced majority of countries to pass, meaning Slovakia alone cannot veto them.

(Reporting by Kate Abnett and Jan Lopatka, additional reporting by Jason Hovet, Andrew Gray and Charlotte Van Campenhout; Editing by GV De Clercq and Aidan Lewis)