Sanctions against Russia Are “On Hold”: The European Union Is Considering Three Options
20 July 23:55
The European Union is trying to break the deadlock that arose during negotiations on the 21st package of sanctions against Russia. The main obstacle has been Greece’s position, as it has opposed a ban on European companies transporting and transshipping Russian liquefied natural gas to third countries. Bloomberg reported on three possible ways out of the situation, citing sources familiar with the negotiations, according to "Komersant Ukrainian"
What three options is the European Union considering?
According to the agency’s sources, EU countries are discussing three main scenarios for further work on the sanctions.
The first involves introducing a 24-month transition period. In this case, restrictions on the transport of Russian LNG to third countries would not take effect for another two years.
The second option is to completely remove the provision regarding the transshipment and transportation of Russian liquefied natural gas from the sanctions package.
The third and most radical scenario involves postponing the entire 21st sanctions package if member states are unable to reach a compromise.
In addition, diplomats are considering the possibility of allowing the fulfillment of existing contracts for the transport of Russian LNG. Such an exception could be one way to persuade Greece to support the package.
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Why Greece Is Blocking Sanctions Against Russia
According to Reuters, Athens fears that a ban on European companies transporting Russian gas to third countries will result in the loss of a portion of the global market.
Greece is one of the largest operators of liquefied natural gas (LNG) tankers. The Greek government believes that once the ban is in place, the relevant contracts could be taken over by companies from the U.S., China, Japan, and other countries that have not joined the EU restrictions.
Athens argues that sanctions should weaken Russia’s economic capabilities but not create additional advantages for competitors of European businesses.
Austria has also spoken out against certain provisions of the package, though, according to Reuters, its objections differ from Greece’s arguments.
The Greek shipping company’s interests may be behind the block
According to the Financial Times, Greece is trying to protect the shipping company Dynagas, which specializes in transporting Russian LNG from the Yamal LNG plant in the Arctic.
The company operates special Arc7 ice-class gas carriers designed for operation in Arctic conditions. It is difficult to quickly reroute such vessels to other routes, so a ban could cause the company significant losses.
According to the publication, Greek diplomats cited the risks to Dynagas as one of the reasons why Athens cannot support the proposed version of the sanctions.
Due to Greece’s position, other provisions of the 21st sanctions package—which may affect Russian banks, cryptocurrency networks, defense companies, drone manufacturers, oil traders, and oil refineries—remain unresolved.
Sanctions require the consent of all EU countries
EU sanctions decisions require the unanimous support of all 27 member states. Therefore, even a single country’s objection can block the adoption of the entire package.
EU ambassadors were already unable to agree on the 21st package during previous negotiations. EU High Representative for Foreign Affairs Kaja Kallas previously confirmed that unresolved issues remain between the member states. Reuters also reported on the lack of agreement regarding the new package.
The negotiations have been rescheduled for July 23, 2026. By that date, the European Union must try to find a formula that preserves key restrictions while taking into account the economic demands of countries that object to certain provisions.
The price cap on Russian oil has been temporarily frozen
Due to the delay in agreeing on sanctions, EU countries have temporarily left the current price cap on Russian oil at $44.10 per barrel.
According to Reuters, this level will remain in effect at least until July 23, when EU ambassadors are scheduled to resume negotiations.
Previously, the mechanism provided for regular adjustments to the price cap in line with conditions in the oil market. However, due to rising oil prices, an automatic review could have increased the permitted price of Russian crude and, consequently, Moscow’s export revenues.
That is why the EU decided to temporarily leave the restrictions unchanged so as not to ease the pressure on the Russian energy sector until the negotiations are concluded.
Some of the proposals have already been softened
During consultations, some provisions of the 21st sanctions package have already been amended or removed.
In particular, following objections from certain member states, proposals to ban imports of certain types of Russian seafood were removed from the document. Other provisions that could have affected European companies were softened or supplemented with exceptions.
In July 2026, the Financial Times reported that a number of EU member states were attempting to protect specific industries and national companies. As a result, negotiations on new sanctions are becoming increasingly complex, and the economic interests of member states are increasingly at odds with the common sanctions policy.
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