EU Sanctions on Russian Oil Blocked by Greece & Malta | Latest Updates

Brussels – The European Union is facing delays in implementing its latest round of sanctions against Russia, as Greece and Malta raise concerns over the potential impact on their shipping industries. The proposed measures, the 18th package of sanctions since Russia’s full-scale invasion of Ukraine, aim to tighten restrictions on the trade of Russian oil and petroleum products, and potentially target entities facilitating these transactions in third countries.

According to reports from Liepajniekiem.lv and LSM, the negotiations have stalled due to concerns raised by Athens and Nicosia regarding the potential disruption to their shipping sectors, which are significant contributors to their economies. The specific nature of their objections remains largely undisclosed, but it is understood to relate to the scope of the proposed restrictions and their impact on legitimate trade.

The proposed sanctions package, announced on July 18, 2025, builds upon previous measures aimed at crippling Russia’s ability to finance its war in Ukraine. Key elements of the package, as detailed in reports from Delfi, LA.LV, and Inbox.lv, include a lowering of the price cap for crude oil to $47.60 per barrel, down from $60, and the introduction of a dynamic mechanism to adjust this cap based on market conditions. Crucially, the package also proposes an import ban on refined petroleum products made from Russian crude oil, even if processed in third countries.

This latter provision is proving particularly contentious. The EU is seeking to close loopholes that allow Russia to circumvent existing sanctions by rerouting oil through countries like Turkey, India, and the United Arab Emirates, where it is then refined into products that can be sold on the international market. The proposed ban aims to disrupt this practice, but it also risks impacting legitimate trade flows and potentially driving up global energy prices.

the EU is considering sanctions against ports in third countries that facilitate the trade of Russian oil. This move, reported by multiple sources including Trade Compliance Resource Hub and Baker McKenzie, represents a significant escalation in the EU’s sanctions strategy, extending its reach beyond its own borders. The Council of the European Union adopted the 18th package on July 18, 2025, following extensive negotiations.

The delays highlight the growing challenges the EU faces in maintaining a united front against Russia. While there is broad consensus on the need to pressure Moscow, individual member states have differing economic interests and vulnerabilities that can complicate the sanctions process. The concerns raised by Greece and Malta underscore the potential for internal divisions to undermine the effectiveness of the EU’s sanctions regime. The EU and the UK agreed to tighten the Russian oil price cap as of September 3, 2025, with a transitional period until October 18, 2025.

The 18th sanctions package also includes asset freezes for 14 individuals and 41 entities, including those associated with 2Rivers and Nayara Energy Limited. A full transaction ban has been imposed on banks previously subject to restrictions on specialized financial messaging services, and the list of affected banks has been expanded. From January 21, 2026, EU operators will be prohibited from purchasing, importing, or transferring certain petroleum products refined from Russian crude oil.

The outcome of the current negotiations will be closely watched by international markets and policymakers, as it will signal the EU’s resolve to maintain pressure on Russia and its willingness to address the concerns of its member states. The EU Commission has been tasked with monitoring Russian crude oil prices to ensure the dynamic mechanism for updating the price cap functions effectively.