Greek veto stalls new EU Russia sanctions

EU ambassadors were unable to reach unanimous agreement on the bloc’s 21st package of sanctions against Russia on July 22, 2026, after Greece blocked the draft. The dispute centres on proposed restrictions affecting EU shipping of Russian liquefied natural gas, a business in which Greek-linked shipowners play a prominent role. Unanimity among member states is required for sanctions decisions, so Greece’s objection has stalled approval of the full package.

While discussions continue, EU envoys agreed to keep the oil price cap on Russian crude temporarily frozen at $44.10 a barrel until July 23, 2026. The move preserves the existing ceiling while governments attempt to bridge differences over the broader sanctions design.

The draft 21st sanctions package targets both Russia’s financial system and its energy revenues. It is reported to include around 215 individuals and entities. Roughly 94 of these are financial institutions, and close to 90 are banks. If adopted as drafted, this would raise the total number of sanctioned Russian banks to more than 100, tightening constraints on Russia’s access to international finance.

Beyond financial listings, the draft also seeks to curb Russian LNG imports into the European Union and to limit related services. A full ban on Russian LNG imports is envisaged to take effect from January 1, 2027, reflecting an effort to reduce the bloc’s exposure to Russian gas revenue over time.

A core point of contention is how far and how fast to restrict EU involvement in the trade and transport of Russian LNG. Proposals under discussion would not only limit imports into the EU but also constrain services European companies can provide to LNG terminals that are majority-owned by Russian entities.

Ireland advanced a compromise under which EU-flagged tankers would be allowed to continue exporting Russian LNG to third countries until January 2029. This approach aims to phase down EU participation while avoiding a sudden disruption to existing shipping arrangements. However, Greece rejected this time-limited exemption, arguing it does not sufficiently protect its shipping interests.

Greece is seeking an indefinite exemption for EU shipping of Russian LNG, citing the importance of this activity for its maritime industry. A prominent example is Dynagas, a Greece-linked shipping group that operates specialised ice-class LNG carriers serving Russia’s Yamal LNG project.

Dynagas has warned that sanctions forcing European operators to abandon long-term contracts would not halt trade in Russian LNG but would instead transfer strategic Arctic assets, including ships and technical know-how, to non-Western operators. The company’s position underscores concerns in parts of the European shipping sector about losing market share and technological capabilities to foreign rivals if strict LNG transport curbs are imposed.