Ukraine's Naftogaz CEO Sees 'Resistance' to 'Meaningful Sanctions' as West Mulls Next Step

Yuriy Vitrenko, the CEO of Ukraine's state-owned Naftogaz oil and gas company, told Newsweek of "resistance" in the EU to a significant sanctions package to punish Russia for its recognition and occupation of two separatist self-declared republics in eastern Ukraine.

EU officials are finalizing their response to Russian President Vladimir Putin's decision, which was previewed during Monday's theatrical meeting of Russia's security council and announced shortly after in an agitated presidential address.

"I think that we'll see a lot of resistance from many vested interests not to impose meaningful sanctions," Vitrenko told Newsweek early on Tuesday, arguing that the EU approach to Putin's aggression has been lacking from the start.

"Russia is not afraid of threat. You cannot influence Putin's behavior just with threats...When he does something bad there are no consequences, it encourages him to do it again."

Vitrenko has long called for pre-emptive sanctions on Russia for its weaponization of gas supplies to Europe and its aggression against Ukraine. Both of Russia's Nord Stream natural gas pipelines should now be targeted, he argued.

The Naftogaz chief spoke with Newsweek just an hour before reports emerged that German Chancellor Olaf Scholz has indeed decided to pull the plug on Nord Stream 2, the $11 billion natural gas pipeline from Russia to Germany that was completed last year but is awaiting approval from German and European regulators.

"No certification of the pipeline can now take place," Scholz said. "The situation today is fundamentally different."

The decision will be met with delight in Ukraine and NATO's Baltic states, which have led the opposition to a project they said would allow the Kremlin to isolate Kyiv and hold Europe's energy supply hostage.

Following the announcement, Vitrenko told Newsweek: "Let's see what it means in practice."

Vitrenko warned that a weak Western response to Putin's aggression would be dangerous for Kyiv, which is already struggling under the weight of the Russian siege.

"The problem is, unfortunately, that the combination of economic hardship and Russian propaganda paves the way for social unrest, with at least some social groups inside Ukraine welcoming Russian annexation," Vitrenko said. "That's his preferred scenario."

The Kremlin's recognition of the Donetsk People's Republic and the Luhansk People's Republic has collapsed the Minsk 2 peace deal, openly put heavily armed Russian troops—described as "peacekeepers" by Moscow—on Ukraine's borders, and threatened a new offensive into Ukrainian-held territory.

EU Commission President Ursula von der Leyen said Monday the bloc would "react with unity, firmness and with determination in solidarity with Ukraine." She described the Russian step as "a blatant violation of international law, the territorial integrity of Ukraine and the Minsk agreements."

The EU—in coordination with the U.S.—has been preparing a large-scale sanctions package to be imposed on Russia if Moscow proceeds with an invasion of Ukraine.

It does not appear that Monday's developments will trigger this response. Foreign policy chief Josep Borell said Monday: "I wouldn't say that's a fully-fledged invasion, but Russian troops are on Ukrainian soil."

Instead, a smaller package—reportedly including a combination of personal asset freezes and visa restrictions—is more likely.

One Baltic diplomatic official, who did not want to be named, told Newsweek: "I'm afraid the first wave of EU sanctions might indeed be more symbolic, which is not our preferred option."

The official explained this means restrictive measures on all economic relations with the DNR and LNR, plus as designations against individuals "responsible for undermining the territorial integrity of Ukraine."

"It's good, but most probably not good enough," the official said. "Our belief is we have to be very strong right now as Putin is most definitely waiting for the Western reaction, and then deciding on what comes next.

"If there is not too much of a reaction, next steps will follow shortly, I fear."

6:35 a.m. ET: This article has been updated to include additional comment from Yuriy Vitrenko.