EU set to allow Greece's Dynagas to ship Russian LNG under new sanctions

European Union countries are set to allow Greek shipping company Dynagas to continue transporting Russian liquefied natural gas (LNG) under a new sanctions package against Moscow, three diplomats briefed on the negotiations told the Financial Times.

The agreement, which still requires formal approval by envoys from the EU’s 27 member states on Thursday, would permit companies within the bloc to carry Russian LNG exports to third countries for a 12-month period, with the option of renewal. However, the volume of shipments would be capped at 2025 levels, the diplomats said.

As part of the same package, EU countries are also expected to extend a price cap on Russian oil at $44.10 per barrel for another year, in an effort to limit Moscow’s fossil fuel revenues.

Without the extension, the cap would have automatically increased on Thursday under a mechanism linking it to global oil prices. Crude prices rose above $95 per barrel earlier on Wednesday — a six-week high — following more than a week of strikes involving the United States and Iran. Shipping through the strategically vital Strait of Hormuz has nearly come to a halt.

Since Russia’s full-scale invasion of Ukraine in February 2022, the EU has introduced 20 rounds of sanctions against Moscow. In the latest discussions, some member states and the European Commission had proposed banning the transport of Russian LNG to third countries altogether. However, those proposals faced growing opposition from countries concerned about the potential economic impact.

The eventual compromise follows strong resistance from Athens and several other EU capitals, which argued that stricter measures would harm key national industries.

Greek authorities, in particular, lobbied against the proposed restrictions in support of Dynagas, a company owned by billionaire George Prokopiou. According to maritime data provider Equasis, Dynagas operates a fleet of 27 gas carriers.

These vessels include roughly one-third of the global fleet of Arc7-class tankers, which are specifically designed to navigate the harsh Arctic conditions surrounding Russia’s Yamal LNG project.

Athens has delayed approval of the EU’s 21st sanctions package against Russia for more than a week, leaving additional measures — including sanctions targeting more banks, cryptocurrency networks, and military-industrial firms — in limbo.

The proposed compromise drew sharp criticism from at least one senior EU official, who described it late on Wednesday night as “outrageous,” underscoring the growing challenges the bloc faces in reaching consensus on further sanctions against Russia.

By Tamilla Hasanova