The European Union has approved a limited exemption that permits European companies to continue transporting Russian LNG to non-EU destinations under contracts signed before 24 February 2022. The measure preserves existing business arrangements while preventing new shipping arrangements. It applies within a tighter sanctions framework for Russia’s energy trade.
The exemption is included in the EU’s 21st sanctions package against Russia and will be reviewed annually by the European Council. European operators will not be able to sign new contracts for transporting Russian LNG, but pre-war agreements can continue within existing volumes.
Greece’s role in negotiating the LNG shipping carve-out
Greece played a central role in negotiating the exemption, according to the terms of the compromise. Athens argued that a blanket prohibition on European LNG carriers would do little to reduce Russian export revenue because the trade could shift to non-European shipping companies. The Greek position also highlighted potential effects on transparency and the distribution of freight income and market share.
The exemption is commercially important for Greece because Greek-controlled companies represent a substantial share of the global LNG carrier fleet. Greek-owned vessels have also remained active in Russian oil transportation since the G7 price-cap mechanism was introduced at the end of 2022.
Greek shipping companies are estimated to have earned more than $3.8 billion from transporting Russian oil during the past three years. Greek-owned ships reportedly carried close to 15% of Russian crude exports in May 2026. The figures point to continued use of European maritime capacity in Russian commodity logistics.
Managed phase-out and compliance requirements for legacy volumes
The exemption is designed as a managed phase-out rather than an immediate rupture of existing trade flows. While existing contracts retain value, their annual review introduces political and compliance risk for operators. Shipowners must demonstrate that cargoes, volumes, counterparties and contracts fall within the permitted framework.
This requirement increases the importance of sanctions screening and documentary controls for shipments covered by pre-war agreements. The approach limits operational flexibility by tying activity to contract-specific parameters subject to review.
Other elements of the 21st sanctions package
Alongside the LNG provision, the package establishes a Russian oil price cap of $44.10 per barrel for the next 12 months. It also expands restrictions targeting finance, energy, cryptocurrency activity and trade. These measures broaden enforcement across multiple sectors linked to Russia’s economic activity.
The shipping compromise protects legacy Greek commercial interests but does not create a basis for fleet expansion around Russian LNG. The permitted market is described as finite, politically exposed and subject to progressively tighter scrutiny as reviews continue.
