Negotiations over the 21st EU sanctions package against Russia have stalled due to a dispute over Russian LNG. Greece is leading the opposition to a proposed ban on transshipment and re-export of the fuel to third countries. EU ambassadors are expected to discuss at least three scenarios to break the deadlock.
According to Bloomberg, the latest package of sanctions has become stuck because of a clash between member states seeking to defend their own economic interests. While EU representatives agreed earlier this week to extend the oil price cap on Russian crude at $44.10 per barrel until July 23, the gas issue remains unresolved. The core disagreement concerns a ban on European companies reloading and reselling Russian LNG to non-EU buyers.
Greek objections put brake on deal
Athens has emerged as the main opponent of the tougher restrictions. Greece operates strategic LNG terminals in the Eastern Mediterranean and is worried that a ban would undercut its role as a regional gas hub and damage its shipping industry. – Our geographic position and investments must not be sacrificed for the sake of a symbolic measure that would only shift trade flows elsewhere – said a Greek diplomatic source familiar with the talks.
The standoff reflects a broader pattern in which national commercial priorities often collide with the bloc’s political ambition to reduce Moscow’s revenues. Earlier proposals in the same package, such as a ban on entry for former Russian soldiers and limits on fish imports, were either delayed or dropped entirely after intense lobbying.
Three routes out of the impasse
EU diplomats have outlined at least three possible compromises for the LNG provision. The first is a full ban on both transshipment and re-export, which Athens rejects. The second option is a restriction on re-export only, allowing Russian LNG to still be handled in EU ports for direct delivery to third countries. The third scenario would avoid any immediate measure and instead commit the bloc to monitor volumes and revisit the issue later this year.
– We are exploring ways to satisfy all parties while still maintaining effective pressure on Russia – a European Commission official stated. The final decision is expected to be taken by EU ambassadors in a meeting scheduled for this week. If no consensus is reached, the entire sanctions package may be delayed, further complicating the bloc’s response to the war in Ukraine.
Poland, along with several Baltic and Nordic states, has pushed for the most ambitious version of the ban. Warsaw argues that Russian LNG still flows into Europe under long-term contracts and that the loophole of transshipment allows Moscow to keep earning from sales to Asia. However, southern EU countries with large fleets and port infrastructure remain skeptical, fearing that stricter rules could hit their own economies harder than Russia.
Źródło: WNP.PL, Fot. Shutterstock/Mircea Moira
