EU leaders extend Russia sanctions for full year, agree on €2 trillion budget, but divisions remain — and Costa opens diplomatic channel with Moscow
Sanctions are now extended for 12 months instead of six — a first since 2022. The 2028–2034 budget will be €2 trillion, but Germany and the Netherlands want to cut spending, while the south and east fear that agriculture will be sacrificed for defence. European Council President António Costa set up a diplomatic channel with Moscow, but Merz said his role should not be expanded.
As reported by CCTV+, EU leaders have agreed to extend sanctions against Russia for another 12 months, European Commission President Ursula von der Leyen said on Friday. The decision, taken at the EU summit in Brussels, marks the first time the bloc has rolled over its economic sanctions package for a full year. Previously, the measures were renewed every six months.
The summit also decided to prepare a preliminary agreement on the long term budget for 2028–2034 worth €2 trillion by October, according to a draft statement. However, significant disagreements remain among member states on the allocation of funds. While Germany, the Netherlands and some other countries seek to reduce overall spending, southern and eastern members fear that funding for sectors such as agriculture will be sacrificed in favour of increased defence spending.
Another hot topic was the Ukraine issue. This month, Kyiv began negotiations on the first package of measures as part of its EU accession talks, and von der Leyen said the bloc intends to begin talks on additional packages in the near future. The European Council also adopted joint conclusions on Ukraine for the first time since December 2024, approved by all 27 EU leaders, European Council President António Costa said at a press conference. He also said he is setting up a diplomatic channel through his office to facilitate direct communication between the EU and Russia, stressing that the bloc should be able to convey its own messages to Moscow, rather than relying on others to interpret Russia's positions.
However, some EU leaders remain cautious about Costa's role in any future peace talks. German Chancellor Friedrich Merz said a diplomatic coordination mechanism involving Germany, France and Britain had been set up at Ukraine's direct request, adding that Costa plays an important role in representing the EU, but there is no need for him to "take further decisions right now." Diplomatic contacts related to a possible ceasefire and peace talks between Russia and Ukraine have so far been largely initiated by the US, while European countries have sought a greater role in the process.
EU sanctions against Russia were introduced in 2022 and renewed every six months. The shift to an annual cycle signals the bloc's intention to maintain pressure on Moscow in the long term. The EU budget for 2028–2034 is the first after Brexit and in the new geopolitical reality. Disagreements between the "frugal" northern countries and the southern/eastern members reflect classic contradictions within the EU. Costa's diplomatic channel is an attempt to give the EU its own voice in peace talks, but Merz's reaction shows that not all leaders are ready to trust him with that role.
The EU tries to speak with one voice, but inside the bloc — the usual battles over money and influence. Sanctions extended for a year signal Moscow that Europe is serious. But the €2 trillion budget has already split the room: some want to spend on defence, others fear losing farm support. And between these battles, a thin thread of diplomacy — Costa wants to talk to Moscow directly, but Merz gently pulls him back: "Not now." In this dance between toughness and dialogue, between solidarity and national egoism, the EU is searching for itself in a new world. And while leaders argue about percentages and mandates, the war continues — which means decisions are needed not only in the meeting room, but beyond it.
