EU ministers finalised the 21st package of sanctions on Thursday morning after concluding talks on 22 July. The agreement includes a specific carve‑out for Greece, permitting the export of Russian liquefied natural gas (LNG) to third‑country markets where the contracts were signed before Russia’s invasion of Ukraine in February 2022.

Why the exemption was needed

Greece, which controls roughly one‑fifth of the world’s merchant fleet, had warned that a blanket ban on Russian LNG from 1 January 2027 would severely damage its maritime sector. Greek officials argued that such a ban would jeopardise long‑term contracts held by tanker operators linked to Dynagas, many of which run for up to twenty years.

Earlier rounds of the negotiations were blocked by Hungary’s Viktor Orbán and Slovakia’s Robert Fico, who secured comparable exemptions for Russian oil delivered via the Druzhba pipeline in 2022. Their opposition forced Athens to threaten a veto unless its shipping interests were protected.

Details of the exemption

The final EU text modifies a ban that had been part of EU law since 2025, allowing Greek vessels to honour existing LNG contracts that pre‑date the invasion. The exemption therefore creates a loophole that other member states could potentially invoke, weakening the uniformity of the sanctions regime.

While the broader sanctions package continues to cover many sectors, the limited ability to stop Russian gas sales through Greek tankers means Moscow can retain a portion of its export income, undermining the EU’s aim to cut hard‑currency revenues that fund its military activities.

Reactions across the bloc

EU officials expressed disappointment that national interests had overridden a fully unified approach. A European Commission spokesperson described the exemption as a necessary compromise to keep the package moving forward, while acknowledging that it reduces the intended impact on Russia’s energy earnings.

Trade unions representing seafarers welcomed the decision, noting that it safeguards thousands of European shipping jobs, but warned that it could set a precedent for future carve‑outs driven by national priorities. Greek industry groups hailed the outcome as a victory for the country’s maritime heritage, and a senior representative of Dynagas, cited by reporter Jorge Liboreiro, called the exemption a major win for both Greece and the company.

Environmental and human‑rights NGOs criticised the move, arguing that it runs counter to EU commitments to reduce fossil‑fuel dependence and to sanction actors supporting Russia’s war, and they called for stricter enforcement.

Potential wider implications

The exemption may encourage Russia to deepen cooperation with non‑EU tanker operators from China, India and the United Arab Emirates, who could fill any gaps left by Greek vessels. Such a shift could entrench Russia’s energy links outside Europe and make future isolation efforts more difficult.

The European Commission plans to assess the effectiveness of the exemption in the coming months. Member states will need to balance the economic influence of powerful shipping lobbies against the strategic goal of limiting Russia’s hard‑currency revenues.

In the short term, the decision preserves European shipping jobs, but analysts warn that the longer‑term risk is a weaker sanctions regime that may enable Russia to continue financing its military campaign. The episode underscores the challenge Brussels faces in reconciling national priorities with a cohesive European response to external aggression.