EditEU envoys reach compromise on 21st Russia sanctions package after Greek LNG controversy
The deal allows Greece-based LNG carrier operator Dynagas owned by shipping billionaire George Prokopiou to continue transporting Russian LNG to third countries
European Union ambassadors reached a compromise late on Wednesday that unlocks the long-delayed 21st package of sanctions against Russia, following intense negotiations centred on Greek objections over liquefied natural gas (LNG) shipping.
According to reports from Reuters and the Financial Times, the deal allows Greece-based LNG carrier operator Dynagas to continue transporting Russian LNG to third countries for a 12-month period, renewable, with volumes capped at 2025 levels. This exemption addresses Athens’ concerns that a full ban on EU companies providing transfer services for Russian LNG would simply shift market share to competitors in Japan, China and the United States without significantly reducing Russian revenues.
Dynagas, owned by Greek shipping billionaire George Prokopiou, specialises in ice-class tankers serving Russia’s Arctic Yamal LNG project. The company has argued that abandoning long-term contracts would transfer strategic assets and know-how to non-Western operators rather than disrupt trade. Greece had blocked agreement for days, warning that the proposed restrictions risked destroying a key segment of its dominant position in Europe’s LNG carrier market.
Key elements of the package
The 21st sanctions package, designed to further squeeze Russia’s wartime economy, focuses heavily on the financial and energy sectors. It includes listings of approximately 215 individuals and entities, among them nearly 90 banks and other financial institutions. This would bring the total number of sanctioned Russian banks to more than 100 – over half of the country’s internationally connected lenders – aiming to discourage third-country dealings and exploit what EU officials see as vulnerabilities in Russia’s banking system.
On energy, the package extends the oil price cap at $44.10 per barrel for one year (or at least six months in some formulations of the compromise), freezing the automatic adjustment mechanism that would otherwise have raised the ceiling amid higher global prices linked to disruptions in the Strait of Hormuz. The temporary freeze had already been agreed last week to prevent Moscow from benefiting from higher earnings while negotiations continued.
Other measures target cryptocurrency networks used to circumvent restrictions, expand the blacklist of Russia’s shadow fleet vessels, and block exports of substances and components for the defence industry. Some earlier proposals – including broader fisheries bans and certain individual listings – were dropped or softened during talks to secure consensus.
Negotiation background
EU envoys met in Brussels on 22 July specifically to overcome the Greek veto after failing to agree the previous day. The deadlock had delayed adoption beyond earlier target dates and forced a short postponement of the oil price cap review. Diplomats described the atmosphere as urgent, with ambassadors under pressure to finalise the package before the summer recess.
The compromise reflects the familiar pattern of EU sanctions diplomacy: ambitious proposals from the European Commission are gradually adjusted to accommodate national economic interests while preserving the overall goal of reducing Russian revenues. Supporters of a tougher line argued that exemptions dilute effectiveness; Greece and some other member states maintained that sanctions must not primarily harm European operators.
Once formally approved by EU ambassadors (expected imminently after the 22 July breakthrough), the package will require final political endorsement. It represents the latest effort to maintain pressure on Moscow more than four years into the full-scale invasion of Ukraine, targeting remaining loopholes in energy transport, finance and trade.
The agreement underscores both the EU’s continued commitment to incremental tightening of measures and the persistent challenges of achieving unanimous consent among 27 member states with divergent commercial priorities.
As Russia’s full-scale war against Ukraine enters its fifth year, further rounds of EU sanctions are proving increasingly divisive, as measures that once enjoyed broad consensus now collide with the economic interests of individual member states and test the Union’s unity.
With Reuters
Caption: An LNG tanker belonging to Greece-based LNG carrier operator Dynagas [Website of Dynagas]
Updated: July 23, 2026 - 06:04
