FT: Greece secures Russian LNG carve-out in EU sanctions talks

Greek shipping company Dynagas will be allowed to continue transporting Russian liquefied natural gas under a compromise aimed at securing agreement on new EU sanctions against Moscow, Report informs, citing the Financial Times.

The deal, which still requires approval by EU ambassadors, would allow companies from the bloc to carry Russian LNG exports to third countries for 12 months, with the possibility of renewal. Volumes would be capped at 2025 levels.

EU countries are also expected to approve the extension of a price cap on Russian oil at $44.10 per barrel for one year as part of efforts to limit Moscow's fossil fuel revenues.

The cap would otherwise have increased automatically because of a mechanism linking it to global oil prices. Crude prices rose above $95 per barrel on Wednesday after more than a week of strikes by the US and Iran, while shipping through the Strait of Hormuz has nearly stopped.

The EU has adopted 20 sanctions packages against Russia since the start of Moscow's full-scale invasion of Ukraine in February 2022. A package approved last October banned the transport of Russian LNG to third countries from the end of this year.

Greece demanded an exemption from that measure as a condition for supporting the latest sanctions package, which also targets Russian exports and the banking sector.

Athens sought the carve-out on behalf of Dynagas, owned by billionaire George Prokopiou. The company operates 27 gas tankers, including a third of the Arc7 fleet built for Arctic waters around Russia's Yamal LNG plant.

Greece had delayed approval of the EU's 21st sanctions package for more than a week, leaving measures against additional banks, cryptocurrency networks and military-industrial companies unresolved.

A senior EU official described the proposed compromise as "outrageous," reflecting the growing difficulty of reaching consensus on further sanctions against Russia.