Greece's decision to block a major European Union sanctions package against Russia to protect a shipping magnate has prompted Brussels to reconsider its strategy. EU officials are now studying ways to accelerate the introduction of more targeted financial restrictions, limiting the scope for individual member states to use their veto power in negotiations.
Athens spent weeks demanding exemptions for ships owned by Dynagas, allowing them to continue the lucrative transport of Russian liquefied natural gas (LNG). This demand was used as a bargaining chip to secure Greece's approval for an otherwise unrelated package of sanctions targeting Russia's financial system and oil export revenues.
According to three officials, the EU is now examining how to curb such negotiating tactics. In recent years, governments have increasingly employed this strategy during multiple rounds of EU sanctions talks to protect domestic businesses that still operate with Russia.
Within the European Commission and among some of the most pro-Ukraine member states, a growing consensus favors abandoning the practice of pursuing large, symbolic sanctions packages. Instead, the idea is to impose sanctions individually or group them by theme. Officials say this approach would reduce the risk of an entire package being blocked by a single member state's veto.
Speaking about the sanctions package finally agreed upon on Thursday after weeks of Greek obstruction, one informed source stated: "This might be the last 'sanctions package.' It's now very clear that this model doesn't work."
Since February 2022, the EU has launched 21 rounds of so-called sanctions packages against Russia. The previous practice bundled multiple measures together, requiring unanimous approval from all 27 member states to take effect. This was often done for maximum media impact or to coincide with specific dates, like the anniversary of Russia's invasion of Ukraine.
However, this model has increasingly shown its flaws. A single member state's veto of one measure can hold up the entire package, delaying other, unrelated restrictions that have the full support of all countries. Last week's events were the most extreme example.
Greece refused to approve the latest sanctions package unless other EU countries agreed to grant an exemption for Dynagas, the shipping company owned by billionaire George Prokopiou. The exemption Greece secured was from a previous EU sanction agreed upon in October 2025, which would have prohibited Dynagas from transporting Russian LNG to non-EU countries starting in January 2027. This successful negotiation allowed the LNG transport business to continue, marking the first instance of a relaxation in the EU's overall economic sanctions against Russia.
Athens' negotiating tactic effectively held the rest of the sanctions package hostage. This included measures to prevent Russia from earning more revenue from crude oil exports, a full asset freeze on 94 Russian financial institutions, and a transaction ban on 33 Russian banks. Multiple EU diplomats involved in the negotiations described the tactic as "unacceptable." One diplomat commented, "I don't want to hear anyone talk about 'unity' anymore."
Greek officials argued that the original LNG transport ban was a policy mistake. They claimed it would only harm Dynagas, not the Russian economy, and would ultimately benefit shipping competitors from China and other non-EU countries.
Supporters of the new model argue that the Council of the European Union can quickly pass powerful and effective sanctions without relying on "packages" to generate media attention. Objections from a single country would no longer interfere with or delay other sanctions from being implemented. Some officials, however, caution that the current strategy still has value. It allows all countries to see the economic impact of a sanctions decision on multiple member states, helping to build consensus that bearing the associated costs is justified.
When asked about a potential change in sanctions strategy, a European Commission spokesperson declined to comment. The spokesperson added, "But it's worth noting that since the start of the war, the EU has launched 21 rounds of massive sanctions. Russia is currently subject to a vast number of sanctions and is under immense pressure."
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