Jun 27, Kathmandu - EU leaders have agreed to extend sanctions on Russia for another six months, amid the possibility that Kremlin-friendly Hungary could ease sanctions on Russia.

The decision at a summit in Brussels means that the European Union (EU) will freeze more than 200 billion euros ($234 billion) of Russian central bank assets over the ongoing war in Ukraine until early 2026, European Union (EU) member state leaders said.

Hungarian leader Viktor Orban is drawing up a contingency plan to impose financial penalties on Moscow if it fails to comply, officials say.

EU counterparts have expressed concern that Budapest's refusal to renew the measures could leave a major dent in the bloc's grip on Russia at a time when the United States is pressuring peace efforts.

The decision was made by Orban for the last time when the sanctions, which are to be extended every six months, come up for renewal in January.

But while the EU has ensured that its existing measures remain in place, it has failed to secure approval for a new package of sanctions due to obstruction from Hungary's ally Slovakia.

Slovakian leader Roberto Fico refused to approve a new round of sanctions at the summit, citing a separate dispute with Brussels over plans to cut off Russian gas imports by the end of 2027.

Slovakia is dependent on Russian gas imports and earns money from transit fees for piped supplies across its territory. Fico announced on Thursday that he had failed to block the sanctions package he wanted despite talks with EU chief Ursula von der Leyen.

Ukrainian President Volodymyr Zelenskyy urged EU leaders in a video address to “come up with a tough package targeting Russia’s oil trade, illegally transported tankers, banks and supply chains used to import equipment or parts for weapons.”

The agenda fell through after Washington refused to support efforts to lower the price ceiling on Russian oil exports as part of a broader initiative at the G7 summit, according to EU officials involved.