Greece has blocked agreement on the European Union’s latest sanctions package against Russia, primarily due to concerns over a proposed ban on the transport of Russian liquefied natural gas (LNG) to third countries.
The objection has forced the EU to temporarily extend the existing $44.10 per barrel price cap on Russian crude oil for another week, until July 23.
The 21st sanctions package targets Russian banks, cryptocurrency networks, drone production, and energy-related activities. It requires unanimous approval from all 27 EU member states.
According to reports, Greece’s main concern centres on the impact the proposed LNG transport ban would have on Dynagas, a Greek shipping company owned by prominent Greek shipping magnate George Prokopiou. Dynagas operates specialized Arc7 ice-class tankers used to transport LNG from Russia’s Yamal project in the Arctic.
Greek officials reportedly warned that the restriction could severely damage the company’s business, as these specialized vessels cannot easily be repurposed for standard LNG routes.
While the LNG transport ban is the main point of contention, the failure to reach agreement on the broader package led to the one-week extension of the Russian oil price cap. The mechanism is designed to limit Russia’s revenue from oil sales while keeping Russian crude on the global market.
Greece, one of the world’s leading maritime nations, has significant shipping interests involved in the transport of Russian energy. The country has previously advocated for coordinated sanctions that do not disproportionately harm European shipping companies.
The dispute highlights the complex balance the EU faces in trying to reduce Russia’s energy revenues while protecting its own economic interests and companies.
Negotiations are ongoing, with the outcome depending on whether Greece receives sufficient guarantees or exemptions for its shipping fleet.