Greece has blocked a new package of European Union sanctions against Russia, citing concerns over its shipping industry and economic impact. The proposed sanctions would prevent EU shipping from transporting Russian liquefied natural gas (LNG) to third parties, a move Greece argues would disproportionately affect its shipping sector, which controls 60 percent of the EU fleet. The European Commission is attempting to finalize the 21st sanctions package this week after previous proposals faced resistance from Greece and other member states.
Key Details
Greece's Deputy Foreign Minister Haris Theoharis emphasized the importance of the shipping industry to the Greek economy, stating,
We don’t want Greece to be a theatre of war operations.
The country is also grappling with the potential fallout from a recent incident involving a Ukrainian naval drone that was discovered near its shores, which raised concerns about safety and environmental risks. Greek officials noted that Ukraine has acknowledged responsibility for the incident and committed to greater caution in the future.
Background
Despite the tensions, Greece has been working to strengthen its ties with Ukraine, having signed a memorandum for assistance in Ukraine's reconstruction efforts last month. The EU's ongoing discussions regarding sanctions come amid a backdrop of increased imports of Russian LNG, which rose by 11 percent in the first half of 2026 compared to the previous year, according to the European Commission.
The blockage of sanctions could lead to increased volatility in European gas markets, particularly affecting LNG prices as the EU continues to navigate its energy dependence on Russia. Investors will watch for the outcome of the EU ambassadors' meeting to determine the future of the sanctions package and its implications for energy security in Europe.