Press review: EU struggles on Russia sanctions while Moscow trade surplus grows

Press review: EU struggles on Russia sanctions while Moscow trade surplus grows Top stories from the Russian press on Tuesday, July 14th© Yury Smityuk/TASSMOSCOW, July 14. /TASS/. The EU failed to approve its 21st sanctions package as the Coalition of the willing postponed troop deployment talks; Russia’s trade surplus grew in January-May on higher exports and stronger trade with Asia; and Trump’s proposed $1.5 trillion defense budget faces Senate uncertainty over Mitch McConnell’s absence. These stories topped Tuesday’s newspaper headlines across Russia. Media: EU struggles to agree on 21st sanctions package as Coalition of the Willing postpones troop deployment talks European allies of Ukraine aimed to signal that they expect developments in the conflict between Moscow and Kiev in the near future. The Coalition of the Willing, a group of countries prepared to deploy troops to Ukrainian territory after hostilities end, discussed the first joint military exercises in its history. The apparent goal was to lend greater significance to this largely symbolic step through approval of the European Union’s sweeping 21st package of anti-Russian sanctions. However, as of Monday, July 13, EU foreign ministers had not managed to reach agreement on the package. Instead, they approved another limited sanctions package that includes, among others, the Russian social media platform VKontakte and the Max messenger. A substantive discussion on deploying Coalition of the Willing troops to Ukraine is not currently under way, a European diplomatic source told Izvestia. "Europe, within the framework of the Coalition of the Willing, is prepared to help ensure security guarantees for monitoring compliance with a ceasefire or for the deployment of multinational forces to support Ukraine’s defense. However, this must be acceptable. There is currently no discussion on this issue," the source emphasized. The Coalition of the Willing has instead concentrated on supplying Kiev, as deploying troops to Ukraine without security guarantees from Washington is not feasible, Valdai Club expert Alisa Kazelko told Izvestia. In her view, the group’s primary objective is to show to Moscow that Europe remains prepared to continue supporting Ukraine. The difficulties the Coalition of the Willing faces in reaching consensus were highlighted by a parallel event involving several of its members - the meeting of EU foreign ministers in Brussels, Nezavisimaya Gazeta writes. The participants’ principal objective was to endorse what had been described as the most extensive package of anti-Russian sanctions drawn up by the European Union. Bulgarian Foreign Minister Velislava Petrova offered a glimpse into the negotiations behind closed doors. Ahead of the July 13 meeting, she confirmed that Bulgaria had halted adoption of the 21st package because it was expected to include Patriarch Kirill and businessman Vagit Alekperov, an outcome Sofia opposed. According to her, two countries are now hindering the package from being adopted: Greece and Austria. Greece objects to the provisions concerning the energy sector, while Austria opposes the financial aspect of the package. Several other countries are also preventing the adoption of new sanctions against Russia, Izvestia has learned. "A number of countries have not yet removed their objections to certain provisions. Negotiations on the 21st sanctions package are continuing, and the intention is to adopt it as soon as possible," a European source told Izvestia. At the same time, Brussels can no longer avoid adopting any new restrictive measures against Russia. Instead of approving a comprehensive sanctions package, it simply included 250 individuals to its sanctions blacklist. The restrictions also target technology holding VK and the legal entity behind the Max messenger. Representatives of both companies stated that the sanctions would not impact their operations. Consideration of the 21st sanctions package may be delayed until the autumn because even its substantially watered-down version has yet to gain sufficient support, Egor Sergeyev, senior research fellow at the MGIMO Institute for International Studies under the Russian Foreign Ministry, told Izvestia. At the same time, he argued that disagreements within the EU are likely to intensify over time, particularly in light of the bloc’s planned ban on imports of Russian LNG beginning in 2027. Brussels has largely moved away from broad sanctions packages to more targeted measures that are often largely symbolic. Most potential sanctions have already been implemented, making agreement on new ones increasingly difficult. Vedomosti: Higher commodity prices, stronger Asian demand boost Russia’s trade surplus Russia’s merchandise exports grew by 8.5% year-on-year to $177.4 bln in the first five months of 2026, according to statistics released by the Federal Customs Service. Imports recorded nearly identical growth, rising 8.1% to $118.3 bln. As a result, Russia’s foreign trade surplus rose to $59.1 bln in January-May, up 9.4% compared with the same period in 2025. Experts interviewed by Vedomosti say Russia’s higher trade surplus was supported by a temporary surge in commodity prices following developments in the Strait of Hormuz, stronger exports of metals, energy and agricultural products, and a rebound in imports of machinery, primarily from China, after last year’s weak base. In value terms, Russian exports fell to every region of the world except Asia, where they increased 14.5% year-on-year to $141.5 bln. Shipments to Europe, Africa, and the Americas declined by 8.4%, 10%, and 17%, respectively. Of those three regions, Europe remained the largest destination for Russian exports, reaching $23 bln. African countries bought $8.3 bln worth of Russian goods, while exports to the Americas totaled $4.5 bln. At the same time, imports rose across nearly all categories tracked by the Customs Service. Imports of mineral products, including crude oil and refined petroleum products, jumped 40.5% from the low base of 2025 to $2.2 bln. Imports of machinery, equipment, and transport vehicles climbed 9.3% to $57.5 bln, while textiles and footwear imports grew 11.3% to $8 bln. The increase in gasoline imports may already be visible in the May statistics, Sergey Suverov, investment strategist at Arikapital Asset Management Company, told the newspaper. Beginning in late May, a number of Russian regions began to face fuel shortages. According to Vladimir Salnikov, deputy head of the Center for Macroeconomic Analysis and Short-Term Forecasting, the growth in exports was driven by a significant increase in prices for Russian export commodities following developments in the Strait of Hormuz. He also highlighted secondary consequences of the conflict in the Middle East, including the easing of sanctions affecting exports of Russian petroleum products. Andrey Gnidchenko, a leading expert at the Center for Macroeconomic Analysis and Short-Term Forecasting, said that export growth during the first five months of the year was mainly fueled by shipments of metals, energy resources - supported by a temporary spike in global oil prices - and food products, owing to a strong harvest. More than half of the increase in imports during January-May 2026 was linked to higher purchases of machinery and equipment, primarily from China, while roughly one-quarter stemmed from increased imports of chemicals and food products, he said. Izvestia: AmCham says dividend payments will be key focus of US-Russia economic negotiations US companies want to ensure the full repatriation of dividend income currently held in Russia’s special accounts before a settlement of the conflict in Ukraine is reached, president and CEO of the American Chamber of Commerce in Russia (AmCham) Robert Agee told Izvestia. In his view, the issue will be one of the key topics in future Russia-US negotiations on economic cooperation. AmCham also anticipates the US authorities to lift the ban on investment in Russia, although it acknowledges that this is only likely to happen after a settlement in Ukraine has been reached. In their dialogue with the Russian authorities, US companies consider resolving the issue of repatriating dividends kept in Type C special accounts to be a top priority, representatives of the American Chamber of Commerce in Russia (AmCham) told Izvestia. The organization hopes that headway on this issue could be achieved even before firm political agreements on resolving the Ukrainian crisis are reached. "On behalf of our members, we continue to raise our concerns over this situation to the Russian authorities and remain open to dialogue so that the situation can improve for foreign businesses that have remained in the Russian market. We also believe that the issue of dividend payments will be one of the key topics in negotiations between Russia and the United States on economic cooperation," Agee told Izvestia. The organization’s main priority is the lifting of the US ban on investment in Russia, although that restriction is also the source of the greatest worry for American businesses. "Because of it, US companies continue to suffer losses in profits, market share, and brand value. They are unable to finance business expansion and are ceding ground to competitors from other countries," Agee said. "From the standpoint of American business interests, we are confident that immediately after a peace agreement on Ukraine is concluded, this ban will be lifted because it damages American companies more than Russian ones," he added. AmCham also told Izvestia that interest among US companies remains at the level of "cautious optimism." Brands that previously left the Russian market continue to extend their trademark rights through the Federal Service for Intellectual Property (Rospatent). According to AmCham President and CEO Robert Agee, several of them are prepared to return at the first available opportunity. Vedomosti: US Senate uncertainty raises questions over approval of Trump’s proposed $1.5 trillion defense budget US President Donald Trump could be left without annual funding for the US military, with the defense budget for fiscal year 2027 (which begins on October 1, 2026) proposed at $1.5 trillion, $350 bln higher than in the previous fiscal year. The principal obstacle facing the legislation is the physical absence of Senator Mitch McConnell, who has been hospitalized since June 14 following another fall. Experts interviewed by Vedomosti believe that although McConnell’s absence could hinder and temporarily delay passage of Trump’s defense budget, bipartisan cooperation and procedural mechanisms make it unlikely that legislation tied to US national security will be significantly postponed. However, the simplified voting procedure also demands extensive preparation. McConnell’s absence creates difficulties for the Trump administration in that process as well. According to The Hill, Republicans may be compelled to negotiate with Democrats, who are expected to seek amendments to the legislation. It is also possible that the funding will not be granted before the start of the new fiscal year on October 1. The proposed 2027 defense budget is 44% larger than the $1 trillion adopted for fiscal year 2026. The requested funding consists of a $1.15 trillion base budget and an additional $350 bln earmarked for the administration’s priority initiatives. The proposed spending would be channeled toward strengthening US capabilities in space, building the Golden Dome missile defense system, advancing missile technologies, expanding the US Navy, and unmanned systems. McConnell’s absence is a sufficiently significant factor for both the passage of the defense bill and the progress of Trump’s broader legislative agenda, although the challenge can be addressed, Pavel Koshkin, senior research fellow at the Institute for US and Canadian Studies of the Russian Academy of Sciences, said. He explained that the death of Senator Lindsey Graham (designated in Russia as a terrorist and extremist), combined with McConnell’s illness, could slow down the bill’s approval process and cause temporary setbacks. "However, as practice shows, Congress is sufficiently flexible when it comes to approving initiatives that are important for national security and defense. When there are not enough senators and representatives available and bureaucratic or technical difficulties arise, the coalition factor and the principle of bipartisan consensus usually help resolve the situation. Not to mention other mechanisms, such as passing legislation under an expedited procedure," the expert emphasized. Every available effort will be made to overcome these obstacles, Vladimir Pavlov, senior research fellow at the MGIMO Institute for International Studies, said. While acknowledging the challenge of securing the necessary number of votes, he considers it unlikely that consideration of legislation related to national security would encounter major delays. Izvestia: Russia to broaden civilian nuclear cooperation in Africa with Djibouti Russia’s number of African partners in the field of civilian nuclear cooperation is set to surpass 20. A cooperation agreement with Djibouti is likely to be concluded at the third Russia-Africa Summit in October, Izvestia has learned. The country provides access to the Red Sea, where Moscow also plans to enhance transport and logistics ties. The small nation of Djibouti, located on the Bab el-Mandeb Strait, already hosts major military bases operated by the United States, Japan, and European countries. To facilitate cooperation with new partner states, Moscow is also increasing its diplomatic presence across Africa. Russian embassies in The Gambia, Togo, and the Comoros are already being readied for opening, the Russian Foreign Ministry told Izvestia. "The Russian and Djiboutian sides are arranging the signing, on the sidelines of the third Russia-Africa Summit, of a Memorandum of Understanding between the Rosatom State Atomic Energy Corporation and the Ministry of Energy and Natural Resources of the Republic of Djibouti on cooperation in the peaceful uses of nuclear energy," the Russian Embassy in Djibouti told Izvestia. Rosatom currently works with 20 African countries. The agreement with Djibouti will outline in detail the areas in which the two sides intend to cooperate, Vsevolod Sviridov, expert at the Center for African Studies at the National Research University Higher School of Economics (HSE University), told Izvestia. "Since the nuclear industry is multifaceted, there could be even greater opportunities for cooperation in medicine, agriculture, and scientific research," Sviridov said. Djibouti’s geographic location is of particular significance to Russia. The Bab el-Mandeb Strait is one of the world’s key maritime trade chokepoints, linking the Red Sea with the Gulf of Aden and the Indian Ocean. Rosatom views Africa as a promising market where demand for electricity is projected to rise over the coming decades and where industry will have an urgent need for new energy sources. Rosatom is being actively supported in this work by the Russian Foreign Ministry, which is boosting Russia’s diplomatic presence in Africa. Preparations for opening Russian embassies in The Gambia, Togo, and the Comoros are now approaching completion, the ministry told Izvestia. TASS is not responsible for the material quoted in these press reviews Press review: Hormuz crisis overshadows Iran nuclear issue and EU divided on Russia talksTop stories from the Russian press on Monday, July 13thRead moreYemeni Houthis report attacking Abha Airport in Saudi ArabiaAccording to the Houthis, the attack was conducted in response to Saudi Arabia’s strike on Sanaa AirportRead moreEU imports record volume of gas from Yamal LNG plant in 2026 — FTAccording to the analysts, the main buyers were France, Belgium, and SpainRead morePutin grants Russian citizenship to man behind BMW X6 designAccording to publicly available sources, Leclercq has worked for major automakers BMW, Kia, and CitroenRead moreAlmost 350 children killed in Ukrainian attacks since 2014, Russian commissioner reportsMaria Lvova-Belova noted that children who arrived in EU countries as refugees are often being bullied by local students and teachersRead moreRussia's trade surplus rises to $14.2 bln in May — 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