Greece and Malta block new EU shipping sanctions on Russian oil

In a 180-degree turn, Greece, alongside Malta, is blocking European Union plans for further sanctions against Russia. This unexpected development coincidentally follows a harsh attack by Russian Foreign Minister Sergei Lavrov, who criticized Greece for severing a partnership with Russia that had been built over many decades.

"Greece and Malta have emerged as the primary obstacles to a European Union proposal to replace the price cap on Russian oil with a total ban on services required for the fuel's transport. The two Southern European nations expressed concerns about the measure during a meeting of EU ambassadors on Monday (9/2/2026), where the bloc's latest sanctions package was presented, according to people familiar with the matter," Bloomberg reports.

According to reports, Greece and Malta fear the change could adversely affect the shipping industry and energy prices across Europe. Both countries reportedly requested clarifications on proposals involving sanctions against foreign ports handling Russian oil and stricter oversight of vessel sellers to limit the expansion of Russia's "shadow fleet."

The EU's plan

Last week, the Commission proposed replacing the existing price cap on Russian oil sales with a ban on services required for oil transport. The proposal, which would impact insurance providers and shipping firms, reflects the difficulties the price cap has faced in significantly reducing Moscow's oil revenues. It serves as the centerpiece of the EU's 20th sanctions package against Moscow as the full-scale invasion of Ukraine enters its fifth year. The measure would depend on support from G7 nations, which collectively implemented the cap at the end of 2022. Reports indicate that the US position regarding this shift remains unclear. It is noted that the European Union had previously adopted a ban on many services prior to the introduction of the price cap.

The Vertical Corridor

Analysts do not view Greece's stance on the new sanctions as an isolated move to protect Greek shipping, but as part of a broader and complex energy chessboard. While Greece appears to "brake" measures affecting its fleet, it is simultaneously leading the initiative for the Vertical Corridor. This is an ambitious natural gas transport network connecting Greek LNG terminals with Bulgaria, Romania, and Hungary, reaching as far as Ukraine.

Consequently, reservations regarding oil sanctions provide Greece with the leverage to demand stronger European funding and political support for the Vertical Corridor's infrastructure, presenting it as the definitive solution for Central Europe's decoupling from Moscow. At the same time, the Greek side is attempting to balance the loss of revenue from shipping activity (due to Russian oil sanctions) with future profits from the country's transformation into a dominant natural gas energy hub. It is worth noting that Athens' understanding of energy price concerns (shared by countries like Hungary) strengthens the position of the Vertical Corridor as a reliable alternative for states remaining trapped by Russian gas.

Attacks on Greek-owned ships

Beyond the sanctions "front" in Brussels, Greek shipping is also confronting an escalating security crisis on international sea routes. Continuous attacks on tankers have repeatedly hit Greek-interest vessels, causing intense concern in Athens. These incidents, occurring in strategic locations such as the Red Sea, add an extra layer of complexity to the discussions over the 20th sanctions package.

This is because the attacks have sent insurance premiums and operational shipping costs skyrocketing. A new EU service ban, such as the one proposed for Russian oil, is viewed by many market players as a "double blow" to a sector already tested by wartime instability. Meanwhile, the targeting of Greek-owned tankers exacerbates the fears over energy prices expressed by Greek diplomats in Brussels. With navigation becoming increasingly dangerous, Athens argues that imposing additional restrictions on transport could further destabilize the European market.

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