Greece’s Veto Stalls EU’s 21st Sanctions Package Over Russian LNG Shipping

On 17 July 2026 Greece refused to give the unanimous support required for the European Union’s 21st sanctions package against Russia. The dispute centres on a proposed ban that would prohibit EU-registered vessels from transporting Russian liquefied natural gas (LNG) to third-country buyers after 1 January 2027. Athens argues the measure would cripple Dynagas, a Greek-owned fleet of ice-class LNG carriers that services the Yamal LNG project in the Russian Arctic, and could force the sale of those vessels to non-EU owners. The veto has delayed approval of the entire package, including tighter controls on Russian banks, cryptocurrency networks and a planned reduction of the $44.10-per-barrel oil price cap.

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The EU’s sanctions regime against Russia has progressively tightened since the invasion of Ukraine in 2022, initially targeting pipeline gas and later expanding to LNG imports, financial services and defence-related entities. A blanket ban on the purchase, import or transfer of Russian LNG was agreed in October 2025 and is slated to take full effect on 1 January 2027. The 21st package sought to extend the ban to the provision of shipping and trans-shipment services for Russian LNG destined for any third country, aiming to cut Russian energy revenues beyond the EU market.

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• George Prokopiou – Greek billionaire shipowner, controlling Dynagas (specialised Arctic LNG carriers) and Dynacom (oil tanker business).

EU’s Next Russia Sanctions Package Adrift Following Greek Veto to Protect Arctic LNG Shipping Interests

• Dynagas – Operates 27 LNG carriers, including a third of the world’s Arc7 ice-breaking fleet used on the Yamal route; contracts extend to 2065.

EU’s Next Russia Sanctions Package Adrift Following Greek Veto to Protect Arctic LNG Shipping Interests

• Greek Government – Represented by its EU ambassador, who warned the ban would “destroy” Dynagas.

Greece blocks 21st EU sanctions package against Russia - FT

• EU Foreign Policy Chief Kaja Kallas – Head of the EU’s diplomatic service, tasked with reconciling member-state objections.

EU’s Next Russia Sanctions Package Adrift Following Greek Veto to Protect Arctic LNG Shipping Interests

• Other EU Member States – Including France, Italy and Austria, which have voiced frustration at Greece’s demand for an exemption.

Reuters

• Dynagas’ fleet includes five Arc7 and four Arc4 vessels; each Arc7 costs roughly $300 million to build.

European Union sanctions threat pushes billionaire George Prokopiou to sell 11 LNG carriers worth billions as Greece warns of shipping catastrophe

• Since early 2025 Dynagas has moved more than 10 million tonnes of Russian LNG on 11 vessels, completing over 140 voyages.

Greece blocks 21st EU sanctions package against Russia - FT

• The EU imported 9.97 million tonnes of Russian LNG in the first half of 2026, a 16 % rise on the same period in 2025, valued at €5.96 billion.

EU Buys 9.97 Mt Of Russian LNG While Debating 21st Sanctions Package Against Moscow

• The current oil price cap remains at $44.10 per barrel; a scheduled review on 15 July would have raised it to $58 per barrel absent the delay.

Euronews

Greek officials contend that the ban would “ruin” Dynagas and force the sale of specialised vessels to non-Western buyers, arguing that such a move would not diminish Russian export volumes but would simply shift market share to competitors in China, India and the Middle East. They stress the need to “maximize pressure on Moscow while minimizing unintended consequences for European businesses, consumers and competitiveness.”

EU Buys 9.97 Mt Of Russian LNG While Debating 21st Sanctions Package Against Moscow

EU diplomats counter that the sanctions are intended to erode Russia’s war-financing capacity and that all member states must share the economic burden. They note that other countries have already accepted losses in related sectors and warn that granting exemptions would undermine the collective impact of the sanctions regime.

European Union sanctions threat pushes billionaire George Prokopiou to sell 11 LNG carriers worth billions as Greece warns of shipping catastrophe

Several ambassadors described Greece’s stance as “shameless” and warned that the exemption request threatens the EU’s strategic objectives. One diplomat called the situation “all pain, no gain,” arguing that Moscow would simply redirect LNG to China if European carriers are barred. Critics also highlight the inconsistency of the EU continuing to import large volumes of Russian LNG while penalising its own shippers.

EU talks on Russia sanctions hit deadlock over Greek shipping exemption demand

Sources differ on the exact size of Dynagas’ fleet: some cite 27 LNG carriers overall, while others focus on the 11 vessels that have completed the 140-plus voyages since 2025. The precise financial impact of a potential default on long-term Yamal contracts (some extending to 2065) remains unquantified.

EU’s Next Russia Sanctions Package Adrift Following Greek Veto to Protect Arctic LNG Shipping Interests

• “Shameless,” — unnamed diplomat

Euronews

• “It's really a dilemma,” — unnamed diplomat

Euronews

• “I am glad I'm not the Greek prime minister.” — unnamed diplomat

Euronews

• “I also regret that we do not have an agreement on the 21st package,” — Kaja Kallas, EU foreign policy chief

EU’s Next Russia Sanctions Package Adrift Following Greek Veto to Protect Arctic LNG Shipping Interests

• “Our aim is to have an agreement. If we don’t have an agreement, then we start to work on Plan B.” — Kaja Kallas

EU’s Next Russia Sanctions Package Adrift Following Greek Veto to Protect Arctic LNG Shipping Interests

EU ambassadors have postponed the oil-price-cap review to 23 July and extended the existing $44.10-per-barrel level for a week while negotiations continue. Greece’s demand for a shipping exemption remains the principal obstacle; a compromise will be required before the full sanctions package can be adopted.

Why Greece Blocked the New EU Sanctions Package Against Russia