EU agrees 21st Russia sanctions package, granting Greece a carve-out to continue shipping Russian LNG to non-EU clients under pre-invasion contracts

EU member state ambassadors reached agreement on a 21st package of sanctions against Russia, with the deal unlocked only after Greece secured a targeted exemption allowing it to continue shipping Russian LNG (liquefied natural gas) to non-EU clients. The carve-out covers contracts concluded before the start of Russia's invasion of Ukraine in February 2022. Greece, which operates the world's largest merchant fleet, had blocked agreement on the sanctions package by demanding a revision of a Russian LNG ban unanimously agreed as part of a previous sanctions round. The country held its veto firmly in place until the majority of member states agreed to introduce the derogation. Without the exemption, Greek-flagged or Greek-operated vessels would have faced restrictions on transshipping Russian LNG cargoes to third-country buyers, threatening a commercially significant trade route for the Greek shipping sector. The exemption is framed as limited to pre-invasion contracts with non-EU buyers, meaning the political cost of the concession is contained. However, the precedent of one member state securing a sector-specific carve-out to a unanimously agreed prior restriction will be closely watched by other member states seeking flexibility in future sanctions rounds. The agreement adds to an already complex landscape for energy traders, commodity finance lenders, and shipping companies who must continuously track the boundary between permitted and prohibited transactions under evolving EU sanctions frameworks.