EU weighs abandoning large Russia sanctions packages

The European Union is considering a fundamental shift in how it imposes sanctions on Russia, moving away from sweeping packages in favor of smaller, thematic measures after Greece held up the bloc's 21st sanctions round for weeks to protect a single shipping company.

The Financial Times reported on July 27 that Brussels officials view the 21st package, adopted on July 23, as potentially the last of its kind. "It is now quite obvious that this approach no longer works," one EU official told the newspaper.censor+2

Greece's Standoff Over Dynagas

The crisis began in mid-July when Greece blocked the 21st sanctions package — proposed by the European Commission on June 9 — to secure an exemption for Dynagas, a shipping company owned by Greek billionaire George Prokopiou. The company operates 11 vessels, including seven Arctic-resistant icebreakers, chartered to Russia's Yamal LNG project.newsukraine.rbc+2

Athens argued the proposed ban on transporting Russian LNG to non-EU countries would "ruin" Dynagas and damage Europe's maritime services industry. Greece was not alone in its objections — at least six member states, including France, Italy, Germany, Austria, and Portugal, raised concerns during negotiations.interfax+2

Under a compromise brokered by Ireland, governments agreed to a renewable one-year exemption allowing companies to continue transporting Russian LNG to third countries for contracts predating Russia's February 2022 invasion, with volumes capped at 2025 levels. The package also freezes the Russian oil price cap at $44.10 per barrel for 12 months and targets 94 Russian financial institutions, 33 banks with transaction bans, and over 250 individuals and entities.euronews+4

A New Strategy Takes Shape

The EU had already signaled a shift toward more agile sanctions. On June 15, the bloc adopted a "mini" sanctions package on a rolling basis, separate from the larger 21st package still under negotiation. Officials now say this model may become the norm, with sanctions approved individually or in small thematic batches to prevent a single country's veto from derailing unrelated measures.mayerbrown+2

The Euronews described the 21st package as "significantly weaker than initially proposed," noting the dropped Russian fish import ban, the removal of contested names from the blacklist, and the LNG derogation. One EU official quoted by European Pravda called the concessions to Greece a "dangerous precedent," as the annual review mechanism gives Athens leverage to extend the exemption indefinitely through future veto threats.euronews+2