Shameless: Greece and LNG Block New Russia Sanctions
Shameless – The European Union’s effort to finalize a fresh sanctions package against Russia has encountered a significant obstacle, and critics are calling the situation Shameless. Greece, home to the world’s largest merchant fleet, has firmly opposed the EU-wide prohibition on Russian liquefied natural gas (LNG) set to begin on January 1, 2027. Under the existing agreement, the restriction will prevent the “purchase, import or transfer, directly or indirectly,” of LNG that “originates in Russia or is exported from Russia.” This stance has drawn comparisons to Shameless behavior from Athens as it seeks to protect its commercial interests.
Greece’s Push for an LNG Exemption
Athens is now demanding that the EU reopen the LNG measure to create an exemption allowing Russian gas to continue flowing to non-EU customers. The Greek government emphasizes that it does not intend to purchase LNG for local use but rather wants to maintain the lucrative shipping routes that serve global markets. Greek representatives contend that a complete transport ban would result in “all pain, no gain,” as Moscow could easily redirect shipments to nations like China while preserving its vital energy revenues.
This approach echoes a strategy Greece employed earlier this year to weaken a comprehensive ban on maritime services for Russian oil tankers. However, fellow EU members are visibly frustrated, viewing the Greek maneuver as an attempt to undermine a legal framework unanimously approved in October. The sanctions were designed to accelerate Europe’s transition away from Russian gas and enable private companies to invoke force majeure clauses to terminate long-term agreements. The Shameless character of Greece’s latest demands has left many diplomats exasperated.
Observers note that Greece appears less willing to endure economic strain compared to other EU nations that have embraced substantial sacrifices to diminish their reliance on Russian energy. Central to this disagreement is Dynagas, a shipping firm specializing in sub-zero operations and owned by Greek billionaire George Prokopiou. Prokopiou also manages another enterprise that generates millions by transporting Russian seaborne oil. Dynagas and its subsidiary have leased 11 ships, including seven Arctic-capable icebreakers, to Yamal, Russia’s premier LNG production facility.
The company warns that enforcing a total LNG prohibition could severely damage “Europe’s maritime capacity, Arctic shipping expertise, employment and strategic influence, while failing to achieve its intended geopolitical objectives.” Dynagas further cautions that violating long-term Yamal contracts, some extending to 2065, might precipitate debt defaults and leave icebreakers idle. “It’s really a dilemma,” remarked one diplomat. The Shameless situation has escalated to the point where it threatens a cornerstone of the broader sanctions proposal.
The Greek resistance has jeopardized a critical component of the new sanctions: the price ceiling on Russian oil. According to current regulations, the cap, presently established at $44.10 per barrel, must be recalibrated every six months to maintain a 15% discount below the prevailing market rate. Following the closure of the Strait of Hormuz, which drove Russian oil prices higher, the upcoming adjustment would raise the ceiling to $58 per barrel. This increase would grant the Kremlin additional financial flexibility while Ukraine maintains its battlefield momentum.
The European Commission deems this outcome untenable and has suggested postponing the review until January to sustain the $44.10 per barrel limit. Originally planned for July 15, the review was temporarily extended to July 23 to allow ambassadors more time to resolve the LNG controversy and reach consensus on the complete package. Throughout these negotiations, certain provisions concerning banking, cryptocurrency, and the shadow fleet have been settled, while fisheries and Patriarch Kirill have been dropped entirely.
Additionally, the prohibition on Russian soldiers has been reduced in scope once more. The most recent draft signals a pledge to keep refining the measure to ensure effective real-world application. France and Italy expressed reservations regarding the administrative workload and legal obligations associated with consular services, meaning the ban will only activate once member states are satisfied with its feasibility. Austria received similar diplomatic reassurance regarding its request to remove sanctions on Rasperia, a sanctioned investment firm, to compensate for a €2.1 billion loss suffered by Raiffeisen Bank International in Russia.
Whereas the previous petition was completely rejected, ambassadors have demonstrated greater willingness this time and assured Vienna that a resolution will be pursued subsequently. This article has been updated with a statement from Dynagas addressing the Shameless developments surrounding Greece’s LNG exemption campaign.
