EU envoys meet to pass new Russia sanctions package amid Greek opposition

EU ambassadors will meet on Wednesday in the hopes of reaching a compromise with Greece and passing a 21st package of sanctions against Russia over its invasion of Ukraine, EU diplomats said.

The new package targets the country’s banking sector in an effort to squeeze Moscow’s financial system at a vulnerable moment.

However, Greece, which wants the EU to soften planned restrictions on Russian LNG supplies, has become the main obstacle to its adoption.

Athens argued last week a forthcoming transfer ban on Russian liquefied natural gas (LNG) would simply shift market share outside Europe and would not impact Russian revenues.

Greece dominates Europe’s LNG carrier market and is among the biggest players globally, competing with Japan, China and the United States.

EU diplomats had hoped the departure of Hungary’s Viktor Orban, who consistently delayed Ukraine aid and Russia sanctions, would translate to smooth sailing on future packages.

However, new cracks in the bloc’s unity have come to the surface as the European Commission tries to close remaining loopholes for Russian business and put further pressure on Russia’s vital energy revenues.

Banking, crypto measures

Russia’s major banks were disconnected in 2022 from SWIFT, a secure global financial payment instructions system, under Western sanctions.

However, Russian companies have succeeded in maintaining trade and financial flows via small or regional lenders as well as cryptocurrency networks.