Greece Halts EU Sanctions on Russia With Demand for LNG Ban Exemption

Greece has halted the European Union’s push to implement a new round of sanctions against Russia by demanding a sweeping exemption to an upcoming ban on Russian liquefied natural gas (LNG).

Athens is seeking to alter the terms of the EU-wide prohibition, which is scheduled to take full effect on January 1, 2027, to protect its dominant global merchant shipping sector.

The original text, unanimously endorsed by member states last October, outlaws the direct or indirect purchase, import, or transfer of LNG originating in or exported from Russia.

The measure was designed to accelerate the bloc's phase-out of Russian gas, allowing private operators to break long-term contracts under force majeure.

The Maritime Loophole

Athens is moving to reopen the legal framework to allow Greek vessels to continue transporting Russian LNG to non-EU clients globally.

Greek officials argue that a total transport ban would be "all pain, no gain," asserting that Moscow would simply pivot to alternative countries like China to handle logistics and maintain its energy revenues.

The diplomatic push has sparked fierce pushback from other EU member states.

Diplomats express deep frustration that Greece is retroactively challenging the agreed text to shield its domestic business interests, demonstrating a significantly lower tolerance for economic sacrifice than the rest of the bloc.

"Shameless," an EU diplomat said.

Billionaire Fleets at Risk

The diplomatic standoff centers directly on Dynagas, an ice-class shipping specialist owned by Greek billionaire George Prokopiou.

The firm and its subsidiary currently charter 11 vessels, including seven Arctic-resistant icebreakers, to Russia’s largest LNG producer at the Yamal facility.

Dynagas has warned that enforcing the 2027 ban risks severe revenue losses, adverse material effects, and potential defaults under its debt agreements.

The shipping company noted that its specialized icebreaker fleet would be rendered entirely useless without access to the Yamal operations.

"It's really a dilemma," another diplomat stated. "I am glad I'm not the Greek prime minister."

Oil Price Cap Encumbered

The entrenched Greek blockade has now disrupted other vital components of the upcoming sanctions framework, including the scheduled automatic revision of the price cap on Russian oil.

Under current rules, the cap must be adjusted every six months to remain 15% below average market prices.

Following oil price surges triggered by the closure of the Strait of Hormuz, the pending review would automatically elevate the cap from $44.10 to $58 per barrel.

The European Commission considers this increase unacceptable, as it provides the Kremlin with vital financial breathing room while Ukraine maintains battlefield momentum.

To keep the cap frozen at $44.10 per barrel, the Commission proposed delaying the automatic review until January next year.

While initially scheduled for July 15, EU ambassadors postponed the decision until July 23 to buy time to resolve the broader LNG dispute.

Diluted Sanctions Terms

While negotiations regarding banking, cryptocurrency, and the shadow fleet have been finalized, other proposed measures have been heavily diluted or abandoned.

Plans targeting fisheries and Patriarch Kirill have been completely dropped from the package.

The proposed entry ban on Russian soldiers has been downgraded once again following administrative and legal concerns raised by France and Italy.

The measure will not take effect until member states determine it can be successfully implemented without excessive consular burden.

Concurrently, a vague compromise has been reached to placate Austria regarding its blacklisted investment firm, Rasperia.

Vienna requested the removal of sanctions on the firm to offset a €2.1 billion loss incurred by Raiffeisen Bank International in Russia, with ambassadors promising to revisit and solve the issue at a later date.