EU Sanctions Russia, but European Ships Still Carry Moscow's LNG
The European Union has approved its 21st sanctions package against Russia, targeting banks, stock exchanges, cryptocurrency networks, oil refineries, the military industry and dozens of vessels accused of forming part of Moscow’s shadow fleet. Yet behind the expansion of these penalties, Brussels has granted an exemption allowing European companies to continue transporting Russian liquefied natural gas (LNG) to third countries.
The Council of the European Union adopted the latest package on Thursday (23/7/2026). The sanctions comprise 218 new designations, consisting of 48 individuals and 170 entities — the largest wave of individual and legal designations the EU has made in the past four years.
However, international media reported that the package also grants a one-year exemption, with the possibility of automatic extension, for EU companies that transfer or transport Russian LNG to countries outside the bloc. The concession was made after Greece demanded changes to restrictions that had previously been agreed.
The exemption does not mean the EU has cancelled its ban on Russian LNG imports. From 1 January 2027, Russian LNG will remain prohibited from entering the EU market. European companies are merely being given room to participate in carrying Russian cargo to buyers in third countries.
Le Monde reported that the volume of LNG transported under the exemption may not exceed 2025 shipment levels. The concession applies not only to Greek companies, but also to other European operators with contractual ties to Russian LNG projects.
The compromise reveals the increasingly thin line between the EU’s efforts to squeeze Russian energy revenues and its member states’ desire to protect national industrial interests. Brussels wants to reduce Moscow’s income, which is seen as sustaining the war in Ukraine, while at the same time not wanting strategically important business activity to shift entirely to non-European companies.
Greece Threatens to Block the Sanctions Package
Greece was the main opponent of the plan to ban the transport of Russian LNG to third countries. Because EU sanctions require unanimous approval from all member states, Athens’ objection had the power to hold up the entire package.
The Greek government argued that a ban on European operators would not halt exports or reduce Russian revenues. According to Athens, the business would simply shift to shipping companies from China, Japan, the United States or other countries outside the EU.
A Greek official told Reuters that sanctions should be designed to maximise pressure on Moscow without creating unintended harm to companies, consumers and European competitiveness. Athens believes the EU should not be handing over an entire business sector to global competitors as a consequence of its own policy.
Greece’s stake in the matter is considerable. The country dominates Europe’s LNG carrier market and is one of the largest players in the world, competing with operators from Japan, China and the United States.
One of the companies with interests at stake is Dynagas, a Greek LNG shipping operator that owns ice-class tanker vessels. These specialised ships serve the Yamal LNG project in the Russian Arctic and are designed to operate in ice-covered waters.
Athens argued that terminating contracts for these specialised vessels would not automatically stop Russian LNG trade. The ships and their operational expertise risk being transferred to non-Western companies, which would then continue transporting Russian gas.
According to Le Monde, Greek Prime Minister Kyriakos Mitsotakis was prepared to block the 21st sanctions package if these interests were not accommodated. The EU ultimately chose to grant the exemption so that restrictions on Russia’s banking, energy, crypto and military industry sectors could still be enforced.
An EU diplomat told Reuters that member states had shown solidarity with Greece. Athens is now expected to demonstrate the same attitude when other member states’ interests face risk in the next round of sanctions negotiations.
TotalEnergies Still Reaps Revenue from Russian LNG
The LNG compromise also relates to the interests of several major European energy companies. France’s TotalEnergies, for instance, holds a direct 20 percent stake in the Yamal LNG project and a 19.4 percent stake in Novatek, the Russian company that is the project’s majority shareholder.
TotalEnergies Chief Executive Patrick Pouyanne said the company earns an average of around 400 million US dollars per year from selling LNG cargoes originating from the Yamal facility. The size of the revenue fluctuates because its sales contracts are linked to the Brent oil price.