Ambassadors will hold an additional round of talks on Thursday morning in a bid to save the package, an EU diplomat confirmed.
Ireland, which holds the rotating Presidency of the Council of the European Union, on Wednesday proposed allowing European gas carriers to export Russian liquefied natural gas to third countries until January 2029. The proposal, seen by POLITICO, would freeze Russian exports and also ban new contracts.
But the Greek government has so far rejected the agreement and instead wants isolation for an indefinite period, said three EU diplomats involved in the discussions, who spoke on condition of anonymity to discuss the sensitive negotiations. Greece’s shipping company Dynagas is one of the few operating ice-ready vessels that can reach Russia’s LNG terminal in the Arctic Ocean. If the EU were to ban its companies from exporting Russian gas, the Greek government argues that the vessels would register elsewhere, reducing EU oversight.
Greece’s merchant fleet of more than 5,000 ships carries almost a quarter of the world’s cargo by weight, more than any other country. It has the world’s largest LNG carrier to the ability.
The delay also means that the EU’s cap on Russian oil purchases will need to be increased again in the short term. Moscow crude is only allowed to be sold at a fraction of the market rate, but rising energy prices due to the war in the Middle East could see the $44.10 a barrel limit reset and the Kremlin reap early profits.
Because sanctions require unanimity among the EU’s 27 capitals, national governments can price their approval by seeking other agreements. Former Hungarian Prime Minister Viktor Orbán, for example, he was a famous blocker of such support for Ukraine, although EU leaders hope that Budapest will be less constrained under his successor, Péter Magyar.
The original proposal for the sanctions package – the 21st since Russia launched its full-scale invasion of Ukraine – included travel restrictions on former Russian military fighters, restrictions on more banks and barring another 250 people from entering the bloc.
The delay is pushing debates down to the wire and past an expected break in legislative business, with Wednesday being the ambassadors’ last meeting until after the August summer vacation. The evening session also saw delegates attend a farewell dinner for their colleagues who are changing positions before re-assembling in September following the break.
