The consensus reached by ambassadors grants Greece a waiver to keep exporting Russian LNG to non-EU buyers for the foreseeable future.

The European Union has decided on a new set of sanctions against Russia after turbulent discussions that almost jeopardized the entire agreement.

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Greece, whose veto had blocked progress until now, secured a concession allowing it to continue transporting Russian LNG to clients outside the EU for the near future.

This represents the 21st sanctions package implemented since February 2022.

The agreement, finalized Thursday by ambassadors, is significantly diluted and raises concerns about the role national economic priorities play in the ongoing effort to diminish Moscow’s funding for the Ukraine invasion.

Nevertheless, the EU avoided a politically damaging revision of the Russian oil price cap, which, based on a formula predating the Middle East conflict, was set to rise from $44 to $58 per barrel.

Such an increase was considered unacceptable by Brussels since it would ease pressure on the Kremlin during a period of renewed Ukrainian battlefield successes.

The ambassadors’ accord maintains the price cap at $44 per barrel for 12 months, eliminating uncertainty amid renewed tensions between the United States and Iran.

«Maintaining the oil price cap stable for a year prevents the Russian military apparatus from benefiting from market fluctuations,» stated Ursula von der Leyen, President of the European Commission, on Thursday morning.

Moreover, the package expands the blacklist of vessels from the shadow fleet, which Russia uses to circumvent the price cap and sometimes conduct hybrid warfare operations. Over 600 of these outdated ships have been denied access to EU ports and services.

The sanctions also target Russian banks, crypto and oil-trading platforms, several metals linked to the conflict, plus more than 250 individuals and companies involved in backing the invasion, spreading pro-war propaganda, and facilitating circumvention.

The deal on Thursday concludes several weeks of intense negotiation, during which member states actively sought to eliminate provisions they found problematic.

An effort to limit imports of Russian seafood, particularly cod and pollack, was dropped after Portugal and Germany raised objections, while Bulgaria succeeded in removing two figures from the final list: Patriarch Kirill, head of the Russian Orthodox Church, and Vagit Alekperov, Lukoil’s billionaire founder.

A stringent proposal to block Russian soldiers from entering the Schengen Area was downgraded to a pledge to continue pursuing effective enforcement. France and Italy had expressed worries about administrative burden and consular legal responsibilities.

The Greek veto

However, the most vocal opposition came from Greece.

This nation, which is home to the world’s largest merchant fleet, stunned other members by demanding a revision of the Russian LNG embargo unanimously agreed upon last year as part of earlier sanctions.

Athens sought a wide-reaching exemption to keep shipping Russian LNG beyond the January 2027 cutoff date.

This request was supported by Dynagas, a transport company owned by Greek billionaire George Prokopiou. Dynagas and its subsidiary operate 11 vessels, including seven icebreakers adapted for Arctic conditions, servicing Russia’s largest gas facility, Yamal LNG.

The Greek administration and Dynagas argued that the transport ban would harm Europe’s maritime service sector, cause job losses, empower foreign rivals, and ultimately fail to curtail Moscow’s financial resources.

Several member states expressed shock at the unexpected bid to revise a text already established as EU law, fearing that approval could set a risky precedent.

Nonetheless, Greece maintained its veto insistently until most member states consented to a derogation permitting the transfer of Russian LNG to non-EU buyers for contracts signed before the February 2022 invasion began.

This clause will be reassessed yearly, granting Athens the ability to use its veto again to ensure renewal.

Meanwhile, Austria achieved a political win as member states agreed to consider its controversial request to lift sanctions on Rasperia, a blacklisted investment company, compensating for a €2.1 billion write-off by Raiffeisen Bank International in Russia.

Unlike the outright rejection last year, ambassadors displayed greater empathy and assured Vienna that a resolution would be sought later.