BRUSSELS — Greece and Malta, two key European Union shipping powerhouses, have emerged as the main roadblocks to the bloc's latest sanctions package against Russia, according to reports from multiple media outlets. The proposed measures, part of the EU's 20th round of sanctions on Moscow, include a sweeping ban on maritime services for Russian crude oil, which the two nations argue could devastate their industries and drive up energy costs across Europe. The European Commission introduced the proposal last week, aiming to tighten restrictions amid ongoing tensions over the Ukraine conflict.
The divisive element at the heart of the package is a plan to replace the existing G7 price cap on Russian oil with a comprehensive prohibition. Under the new rules, EU-based shipping, insurance, and port services would be barred from handling any Russian crude oil, irrespective of its purchase price. This shift, officials say, is intended to close loopholes that have allowed Russia to continue exporting oil despite Western restrictions imposed since the escalation of the Ukraine war in February 2022.
At an EU ambassadors' meeting on Monday, representatives from Greece and Malta voiced strong objections, citing potential harm to Europe's vital shipping sector. According to Bloomberg, which cited anonymous sources familiar with the discussions, the two countries expressed fears that the ban would "damage Europe’s shipping industry and inflate energy prices." Greek officials, in particular, highlighted the risk of mass contract cancellations and significant financial losses for their tanker operators.
Greece controls the world's largest fleet of oil tankers, a cornerstone of its economy. Analysis from Lloyd’s List, a leading industry publication based in London, indicates that EU-owned or controlled tankers—predominantly Greek—handled 19% of Russian oil shipments last month. A full services ban would immediately ground these commercially owned vessels, preventing them from transporting Russian cargo even if the oil is bought legally under the current price cap of $44.10 per barrel.
Malta, for its part, operates one of the world's largest shipping registries, where thousands of vessels are flagged for tax and regulatory benefits. The proposed sanctions threaten this revenue stream, as Maltese-flagged ships could face restrictions on dealings with Russian oil. European Commission officials are now engaged in internal negotiations with Athens and Valletta to address these concerns, Lloyd’s List reported, in a bid to secure consensus before the package's expected finalization.
The 20th sanctions package is slated for approval by February 24, exactly four years after Russia's full-scale invasion of Ukraine. As EU member states, both Greece and Malta wield veto power over sanctions decisions, meaning the measure cannot proceed without their agreement. This standoff underscores the challenges in maintaining unity among the 27-nation bloc, especially on economic measures that hit close to home for certain members.
Since 2022, Western governments have rolled out extensive sanctions targeting Russia's energy sector, including the G7-led price cap designed to limit Moscow's war chest while keeping global oil supplies flowing. The cap, enforced through shipping and insurance restrictions, was meant to prevent Russian oil from selling above a set threshold. However, enforcement has proven tricky, with allegations that Russia has built a "shadow fleet" of older, uninsured tankers to evade controls.
Recent months have seen heightened naval actions against these vessels. The US, British, and French navies have seized several tankers suspected of violating sanctions, according to reports from Western governments. Britain is reportedly preparing to deploy a seaborne drone fleet specifically to intercept Russia-linked ships, a move that could escalate maritime confrontations in international waters.
Russian officials have condemned these seizures as a “blatant violation” of international maritime law. In statements from Moscow, diplomats have argued that such actions undermine global trade norms and disproportionately target Russia's legitimate energy exports. The Kremlin has repeatedly claimed that the sanctions have backfired, asserting that Russia has successfully adapted by redirecting trade to non-Western partners like China and India.
Despite these adaptations, EU proponents of the new sanctions argue that tighter maritime bans are essential to further squeeze Russia's oil revenues, which fund its military operations in Ukraine. The European Commission has emphasized that the measures align with broader efforts to support Kyiv, including previous packages that targeted everything from luxury goods to dual-use technology. Last year's sanctions, for instance, expanded restrictions on Russian banks and froze assets worth billions.
Industry experts warn of ripple effects beyond Europe. A ban on EU services could accelerate the growth of Russia's shadow fleet, potentially increasing environmental risks from aging tankers and uninsured operations. Lloyd’s List analysis points out that Greek shipowners, who dominate the global tanker market with over 20% of the capacity, have already begun diversifying away from Russian routes, but a sudden prohibition could trigger chaos in chartering markets worldwide.
In Athens, shipping associations have lobbied vigorously against the proposal. The Union of Greek Shipowners, representing major players like Tsakos Energy Navigation and Thenamaris, has called for exemptions or phased implementation to mitigate losses estimated in the hundreds of millions of euros. Maltese authorities, meanwhile, have stressed the importance of their registry to the EU's overall maritime strength, noting that it flags over 8,000 vessels carrying a significant portion of global cargo.
The negotiations come at a sensitive time, as winter energy demands strain European supplies. While the EU has reduced its reliance on Russian fossil fuels through diversification and renewables, any disruption to shipping could exacerbate price volatility. Bloomberg sources suggest that compromises might include carve-outs for certain low-price transactions or delays in enforcement to allow industry adjustments.
Looking ahead, the outcome of these talks will test the EU's resolve in its sanctions strategy. If Greece and Malta hold firm, the package could be watered down or delayed, potentially emboldening Russia. Conversely, a breakthrough might signal stronger transatlantic alignment on curbing Moscow's oil trade. As February 24 approaches, diplomats in Brussels are working overtime to bridge the divide, with the eyes of the world on whether economic interests will prevail over geopolitical solidarity.
The broader context of EU-Russia relations remains fraught. Four years into the conflict, sanctions have reshaped global energy flows, with Russia redirecting exports eastward and Europe investing heavily in LNG terminals from the US and Qatar. Yet, as Russian officials maintain, the measures have not halted the war or crippled the economy, with GDP growth reported at 3.6% last year despite the pressures. For now, the fate of the 20th package hangs in the balance, a microcosm of the enduring challenges in Europe's response to the crisis.