Greece has emerged as one of the main opponents of a proposed European Union ban on the transportation of Russian liquefied natural gas (LNG) to third countries, arguing that the measure would disproportionately damage Greek shipping interests and strand billions of dollars in specialized vessels.
The dispute has become one of the final obstacles preventing EU member states from agreeing on the bloc’s 21st package of sanctions against Russia following its invasion of Ukraine.
According to a report by the Financial Times, Greek representatives warned fellow EU officials during negotiations in Brussels that the proposed restrictions could have devastating consequences for Greek LNG shipping company Dynagas, one of the world’s largest operators of Arctic LNG carriers.
The report said Greek officials argued the measure could effectively “ruin” the company because many of its vessels were designed specifically for Russia’s Arctic gas projects and cannot easily be redeployed elsewhere.
The Dynagas problem
At the center of the dispute is the fleet operated by Dynagas, a Greek-owned company specializing in LNG transportation.
According to maritime industry data, Dynagas operates 27 LNG carriers, including a significant share of the world’s Arc7-class vessels — highly specialized icebreaking tankers built to operate year-round in the Arctic waters surrounding Russia’s Yamal LNG project.
Unlike conventional LNG carriers, Arc7 vessels are designed to navigate thick ice without icebreaker assistance, making them among the most technically sophisticated and expensive commercial ships ever built.
Industry estimates place the value of each vessel at approximately $300 million.
Because the ships were designed specifically for Arctic operations, shipping executives argue they have limited alternative commercial uses outside Russian LNG projects.
If the sanctions are approved in their current form, some industry officials warn Greek operators could be forced to sell the vessels to buyers in non-Western countries.
Greek shipping and Russian energy
The debate comes as Greek shipping companies remain major players in the transportation of Russian energy exports despite Western sanctions.
Greek-owned tankers have continued carrying Russian crude oil under the framework established by the G7 price cap mechanism, which allows shipping and insurance services for Russian oil sold below the agreed price threshold.
Greek Reporter previously reported that Greek-owned vessels remained among the largest transporters of Russian oil cargoes in the years following the invasion of Ukraine, reflecting Greece’s dominant position in global tanker shipping.
The LNG market, however, presents a different challenge.
Unlike crude oil tankers, Arctic LNG carriers cannot easily switch routes or cargoes because of their highly specialized design and operational requirements.
Sanctions negotiations continue
EU foreign policy chief Kaja Kallas confirmed this week that member states have not yet reached agreement on the sanctions package but said negotiations were progressing.
“I also regret that we do not have an agreement on the 21st package,” Kallas told reporters after a meeting of EU foreign ministers. “Although, I must say that we are quite close.”
European media reports indicate negotiations have now been extended until at least July 23.
The disagreement highlights the increasingly difficult balance facing European policymakers as sanctions move beyond financial restrictions and begin affecting highly specialized sectors of the continent’s economy.
For Greece, whose shipowners control the world’s largest merchant fleet, the issue is not only geopolitical but also strategic.
The country’s maritime industry transports roughly one-fifth of global seaborne trade and remains one of the pillars of the Greek economy.
Whether Brussels ultimately grants exemptions or proceeds with the restrictions could have implications far beyond Greece, shaping the future of Russian LNG exports and the global shipping market alike.
Related: Greek Shipping Companies Reportedly Made $3.8 Billion Transporting Russian Oil
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