The EU has relented on objections from member states, granting what one diplomat has described as an “outrageous exemption,” to issue a watered-down sanctions package targeting Russia. Greece successfully lobbied to allow EU companies to continue transporting Russian liquefied natural gas (LNG) to third countries, media reports claimed on Thursday.
The package, the EU’s 21st since the escalation of the Ukraine conflict in February 2022, was presented by the European Commission in June. It was designed to target Russia’s energy, financial, crypto, trade, and fisheries sectors, bar entry to former Russian servicemen, and phase out Russian LNG transportation by EU companies.
The bloc held several failed rounds of talks on the package, which requires unanimous approval from all 27 EU member states, with a number of nations arguing that some of the proposals would harm their economic interests. Greece, which has the world’s largest independent cross-trade LNG fleet by capacity, warned that banning EU shipping companies from transporting Russian LNG would harm Greek shipping interests, including Dynagas.
Dynagas, one of the few European companies that operate ice-class LNG carriers capable of reaching Russia’s Yamal LNG project in the Arctic, says its vessels are tied to contracts running until 2065 that predate the Ukraine conflict. It argued that the sanctions could force it to sell its fleet, weakening Europe’s shipping industry while benefiting foreign competitors. Greece also reportedly warned that the measure could trigger widespread reflagging to jurisdictions where EU rules would be harder to enforce, and pushed for an indefinite exemption.
According to Euractiv and Euronews, citing diplomats, under a compromise brokered by the EU’s rotating presidency which is held by Ireland, ambassadors signed off on the package on Thursday after agreeing to a renewable 12-month waiver allowing the Greek company and other EU companies to continue transporting Russian LNG, subject to annual reviews. They also approved a 12-month freeze on adjustments to the G7’s $44.10-per-barrel price cap on Russian oil. Without the move, the cap would have automatically increased on Thursday under a mechanism linked to global oil prices, which Brussels reportedly opposed as it would have raised the ceiling to $58 per barrel, benefiting Russia.
Apart from the Greek concession, the final package is reportedly significantly diluted. A Baltic-backed proposal to ban Russians who served in the military after the escalation of the Ukraine conflict from entering the bloc was scaled back after France, Italy, and Greece pushed back. The measure now only applies to short-stay visas and narrows the criteria from general military service to direct participation in military operations.
EU envoys also reportedly dropped plans to phase out Russian fish imports following resistance from Germany, Poland, and Portugal, which sought to protect domestic processors. Efforts to sanction Patriarch Kirill, the head of the Russian Orthodox Church, were also reportedly blocked after opposition from Bulgaria and Italy, ensuring his removal from the blacklist.
The package, however, reportedly blacklists around 250 individuals and entities accused of supporting Russia’s military operation against Ukraine, “spreading propaganda,” or helping circumvent sanctions, as well as more than 600 vessels linked to the supposed ‘shadow fleet’, which allegedly helps Russia bypass sanctions on oil exports. It also targets Russian banks, crypto platforms, and oil traders.
The final version of the package must still undergo technical revisions before being adopted by all 27 member states.
Analysts and diplomats say the long-debated package highlights growing divisions within the bloc as the sanctions increasingly clash with member states’ economic interests.
“There’s no more low-hanging fruit, with 20 packages done,” one EU diplomat told Politico.
Some say the standoff exposes the fact that there was never actual unanimity on sanctions, and that former Hungarian Prime Minister Viktor Orban’s departure has deprived other EU capitals of a convenient shield. For years, the scapegoating of Orban allowed other governments to hide behind Budapest while defending their own economic interests. With Peter Magyar now in office and Hungary no longer blocking the sanctions, the objections have openly surfaced.
“It has been a surprise and a disappointment how many member states have stalled in their actions,” Finnish MEP Ville Niinisto told Politico. Another diplomat said: “Orban was difficult, but he never actually blocked whole packages.”
The package comes as the EU continues to face soaring energy costs after slashing most Russian energy imports following the escalation of the Ukraine conflict, and according to consultancy Wood Mackenzie, risks entering the upcoming heating season with its lowest gas reserves in 15 years. The bloc still imports Russian LNG, which accounts for around 14% of its supplies, even as Brussels prepares to ban purchases from January 1. The EU imported a record 9.89 million tons of LNG from Russia’s Yamal project in the first half of 2026, the Financial Times reported earlier this week.
Moscow has long maintained that the sanctions will not alter its political course or have a decisive impact on its economy, while analysts have warned that the sanctions largely backfire on those that impose them.
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