The European Union has approved a limited exemption allowing European companies to continue transporting Russian LNG to non-EU destinations under contracts signed before 24 February 2022, preserving existing business while prohibiting new shipping arrangements.
The compromise forms part of the EU’s 21st sanctions package against Russia and will be reviewed annually by the European Council. European operators will be unable to sign new contracts for transporting Russian LNG, but pre-war agreements can continue within their existing volumes.
Greece played a central role in negotiating the exemption. Athens argued that a blanket prohibition on European LNG carriers would do little to reduce Russian export revenue because the trade could migrate to non-European shipping companies. Such a shift could reduce transparency while transferring freight income and market share away from EU operators.
The question is commercially important for Greece because Greek-controlled companies represent a substantial share of the global LNG carrier fleet. Greek-owned vessels have also remained active in Russian oil transportation since the G7 price-cap mechanism was introduced at the end of 2022.
Greek shipping companies are estimated to have earned more than $3.8 billion from transporting Russian oil during the past three years. Greek-owned ships reportedly carried close to 15% of Russian crude exports in May 2026, demonstrating the continuing importance of European maritime capacity to Russian commodity logistics.
The exemption creates a managed phase-out rather than an immediate rupture. Existing contracts retain value, but their annual review introduces political and compliance risk. Shipowners will have to demonstrate that cargoes, volumes, counterparties and contracts fall within the permitted framework, increasing the importance of sanctions screening and documentary controls.
Alongside the LNG provision, the package establishes a Russian oil price cap of $44.10 per barrel for the next 12 months and expands restrictions targeting finance, energy, cryptocurrency activity and trade.
The shipping compromise protects legacy Greek commercial interests, but it does not provide a basis for fleet expansion around Russian LNG. The permitted market is now finite, politically exposed and subject to progressively tighter scrutiny.
