Greece has emerged as the main opponent of proposed European Union measures aimed at limiting EU shipping companies from transporting and trading Russian liquefied natural gas. The disagreement has delayed agreement on the bloc’s latest sanctions package.
EU ambassadors did not reach unanimity during meetings on 15 and 16 July, moving negotiations on the proposed 21st sanctions package to 23 July. Austria has also raised objections to other parts of the package, while Greece’s concerns are focused on commercial impacts for European LNG shipping.
Proposed LNG shipping limits and potential market effects
Athens argues that the restrictions could weaken European shipowners without materially reducing Russia’s ability to export LNG. It says cargoes could be redirected to operators located in China, Japan, the United States or other non-EU jurisdictions.
Under that scenario, Russian supply would continue while European companies would lose market share, according to Greece’s position. The issue is linked to how the measures would apply beyond deliveries into Europe.
Sensitivity for Greek-controlled LNG carrier fleets
The dispute is particularly significant for Greece because Greek-controlled firms operate one of the world’s largest LNG carrier fleets. Operators including Dynagas own specialised Arc7 ice-class vessels used on Russia’s Yamal LNG route.
The Arc7 ships are designed for Arctic conditions and have fewer commercially viable alternatives than conventional LNG carriers. Greece argues that an enforced withdrawal from Russian trade could therefore increase costs for their owners.
Scope of sanctions and timing amid high gas prices
The proposed restrictions would broaden the EU effort to reduce Russian energy revenues beyond imports into Europe. The European Commission has previously indicated that European companies could be prevented from trading Russian LNG internationally, not only from delivering it to EU terminals.
This approach would shift the measure from an import restriction toward a wider prohibition on maritime services. Greece has supported earlier sanctions against Russia but is seeking recalibration of the LNG provisions.
The disagreement also aligns with market conditions, as European gas prices have returned to their highest levels of 2026. That raises sensitivity around any policy changes that could disrupt LNG logistics.
A compromise is expected to depend on more targeted restrictions, transitional arrangements for specialised vessels, or stronger evidence that the measures would constrain Russian revenue rather than redistribute shipping activity.
