Greece has emerged as the principal opponent of proposed European Union measures aimed at restricting EU shipping companies from transporting and trading Russian liquefied natural gas. The issue has delayed agreement on the bloc’s latest sanctions package. EU ambassadors did not reach unanimity during meetings held on 15 and 16 July, with negotiations on the proposed 21st sanctions package pushed to 23 July. Austria has also raised objections to other elements of the package.
Greece focuses on impacts for European LNG carriers
Athens’ concerns centre on the commercial consequences for European LNG shipping. Greece argues that the restrictions could weaken European shipowners without materially reducing Russia’s capacity to export LNG. It says cargoes could be redirected to operators based in China, Japan, the United States or other non-EU jurisdictions. In that scenario, Russian supply would continue while European companies lose market share.
Greek fleet exposure tied to Arctic ice-class vessels
The issue is particularly sensitive for Greece because Greek-controlled companies 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. These ships are designed for Arctic conditions and have fewer commercially viable alternatives than conventional LNG carriers. Greece says an enforced withdrawal from Russian trade could therefore be more expensive for their owners.
LNG trading limits extend beyond deliveries to EU terminals
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. That approach would shift the measure from an import restriction to a wider maritime-services prohibition. Greece has supported previous sanctions against Russia but wants the LNG provisions recalibrated.
Gas price levels raise sensitivity around logistics disruptions
The disagreement also reflects a tension between foreign-policy objectives and Europe’s interest in maintaining control over strategically important maritime infrastructure. Greece argues that removing European owners from Russian LNG transport would not necessarily immobilise cargoes, particularly where alternative operators, insurers and trading structures can be established outside the EU. The negotiations are taking place as European gas prices have returned to their highest levels of 2026. That backdrop increases sensitivity to any policy that could disrupt LNG logistics.
A compromise is likely to involve more targeted restrictions, transitional arrangements for specialised vessels, or stronger evidence that the measures would constrain Russian revenue rather than simply redistribute shipping activity.
