EU Ambassadors to Discuss New Russia Sanctions After Greek Veto

BRUSSELS — EU ambassadors will on Thursday examine a fresh proposal on a sweeping new set of Russia sanctions after Greece again vetoed the measures over concerts for its fuel shipping industry.

The fresh proposal, put forward by EU rotating presidency holders Ireland, offers a credible way out of the deadlock that has held up progress on the package for weeks, two diplomats familiar with the negotiations told POLITICO. They were granted anonymity to discuss the confidential discussions.

“The agreement is now reachable,” one of the diplomats said, adding that haggling over implementation timelines and exemptions will be key to finding a way forward.

Talks ended without an agreement on Wednesday night — the latest in a series of efforts to reach consensus on a slew of energy and trade measures designed to drain Moscow’s war chest as its offensive against Ukraine grinds into its fifth year. The delay pushes discussions down to the wire and past the anticipated cut-off for legislative business. Wednesday was supposed to have been the final ambassadors' meeting until after the August summer holidays.

The package was presented by the European Commission in June, but discussions over the details have dragged on, despite significant parts — like a ban on Russian seafood imports and visa restrictions for its soldiers — being watered down in the process.

Athens has dug in its heels over a proposed ban on EU companies shipping Russian gas to consumers outside the EU, arguing it goes beyond what leaders had previously agreed and that practice would continue anyway with vessels just re-registering abroad.

The Greek government refused an earlier compromise in which European gas tankers would be allowed to export Russian liquefied natural gas to third countries until January 2029. That version also capped Russian exports and banned new contracts. Athens instead has pushed for an indefinite exception, said three EU diplomats involved in the discussions, granted anonymity to talk about the sensitive negotiations.

Greece’s permanent representation to the EU declined to comment.

Greece’s Dynagas shipping company is one of the few that operates ice-ready ships that can reach Russia’s LNG terminal on the Arctic Ocean. If the EU were to ban its companies from exporting Russian gas, the Greek government argues the ships will simply register elsewhere, reducing EU oversight.

Greece's merchant shipping fleet of more than 5,000 vessels carries around a fifth of the world's cargo by weight, more than any other country. It has the world's largest LNG fleet by capacity.

Because sanctions require unanimity among the EU’s 27 capitals, national governments can put a price on their consent by seeking other concessions. Former Hungarian Prime Minister Viktor Orbán, for example, was a notorious blocker of such support for Ukraine, although EU leaders hope Budapest will prove less obstructive under his successor, Péter Magyar.

The sanctions package — the 21st since Russia launched its full-scale invasion of Ukraine — will also hit Moscow's oil and gas revenues, sanction dozens more banks and prevent another 250 individuals from entering the bloc.