Greece Blocks EU Sanctions Expansion on Russian LNG Over Shipping Concerns

Greece has opposed the European Union's planned sanctions on Russian liquefied natural gas (LNG), requesting an exemption for its transportation to customers outside the EU. This stance has made Greece the main obstacle to broadening EU sanctions against Moscow, following a political shift in Hungary. As the Mediterranean country with the world's largest commercial shipping fleet, Greece is a major exporter of Russian LNG and fears that expanded sanctions would harm its shipping companies.

The EU had planned to implement a ban starting in early 2027 on the purchase, import, or transfer of Russian natural gas, directly or indirectly. However, Greek officials argue that banning transportation alone would not benefit the EU, as Russia could redirect exports to countries like China, thus preserving its revenues. Diplomats from other EU member states expressed frustration with Greece's resistance, with one describing Greece as "shameless."

Central to the dispute is the Greek company Dynagas, owned by billionaire Yorgos Prokopiou, which specializes in ultra-low temperature shipping and leases 11 vessels to Russia's Yamal LNG facility. Dynagas contends that a full embargo on Russian LNG would harm Europe's maritime transport capabilities and breach long-term contracts with Russia, some extending to 2065. Meanwhile, Ukraine has ceased Russian gas flows through its territory, and Israel has begun exporting gas to Egypt, marking significant developments in regional energy dynamics.