EU Grants Greece Exception for Russian LNG Shipping

The European Union's latest sanctions package against Russia has been met with praise for limiting the Kremlin's ability to finance its war in Ukraine. However, a recent exemption granted to Greece has raised concerns about the effectiveness of these measures.

The EU reportedly allowed Greek shipping company Dynagas, controlled by billionaire George Prokopiou, to continue transporting Russian liquefied natural gas (LNG) to third countries under existing contracts. This concession is expected to benefit Dynagas, which owns or manages five specialized Arc7 LNG carriers serving Russia's Yamal LNG project.

The EU had identified a pressure point in Russia's LNG exports, but instead of fully exploiting this leverage, it negotiated around it. LNG has become one of the Kremlin's most valuable remaining export sectors, and Yamal LNG is at its center.

Supporters of the Greek position argue that restricting European operators would simply transfer business to competitors from China or elsewhere without significantly reducing Russian revenues. However, this argument against meaningful sanctions is problematic.