The European Union is scrambling to break the deadlock over the 21st sanctions package against Russia, stalled by Greece’s opposition to a proposed ban on the transshipment and re-export of Russian liquefied natural gas (LNG) to third countries. According to Bloomberg, Brussels is considering three scenarios: a 24-month transitional period, the withdrawal of the contentious provision, or the outright rejection of the entire package.
EU ambassadors are scheduled to meet later this week in an attempt to reach an agreement. The hold-up comes as member states struggle to balance geopolitical pressure with the protection of their own economic interests.
Last week, the EU member states agreed to temporarily maintain the price cap on Russian oil at $44.10 per barrel until July 23. However, the LNG dispute has proven far more divisive.
Greek veto over LNG loophole
At the heart of the conflict is a proposal to prohibit European companies from handling the reloading and onward shipment of Russian LNG to non-EU countries. Greece, a key player in the Mediterranean LNG trade, has vehemently opposed the measure, arguing it would damage its shipping and energy hub revenues.
– We cannot accept rules that would turn our ports into a secondary market at a time when we are trying to diversify supplies – said a Greek diplomatic source familiar with the negotiations.
Bloomberg notes that the negotiations are particularly tough because individual capitals are focused on safeguarding their domestic sectors. Previous plans to ban entry into the EU for former Russian soldiers have been watered down and postponed, while proposals to restrict imports of certain Russian fish products were dropped entirely.
Three paths out of the impasse
To break the deadlock, Brussels has put forward three possible solutions. The first option would grant a 24-month transition period before the LNG re-export ban takes effect, giving companies and member states time to adjust. The second would involve simply scrapping the controversial LNG provision from the package, allowing the rest of the measures to proceed. The third and most drastic option would be to abandon the entire 21st package altogether.
– If we cannot agree on one of these compromises, the whole sanctions effort risks being delayed or weakened – an EU official told Bloomberg on condition of anonymity.
The meeting of ambassadors this week is seen as a critical deadline. If no consensus is reached, the European Council may have to step in at the political level to resolve the dispute.
Źródło: WNP.PL, Fot. Shutterstock/Licvin
