It is widely accepted that the European Union’s anti-Russian sanctions do more harm to its member states than it does to Russia. Europe, and especially Germany, is being deindustrialised because of the high energy prices resulting from sanctions against Russian oil and gas. Now, the EU’s 21st sanctions package failed to be approved at the meeting of EU Ambassadors on July 15 because some members refused to shoot themselves in the foot. The new sanctions, if they are passed, would target Russian banks, cryptocurrency networks, drone production, and energy-related activities.
Greece has reportedly blocked the package over a proposed ban on the transport of Russian liquefied natural gas (LNG) to third countries. It would put out of business the Greek shipping company Dynagas, owned by prominent Greek shipping magnate George Prokopiou. The company operates specialized Arc7 ice-class tankers used to transport LNG from Russia’s Yamal project in the Arctic. Greece’s refusal forced the EU to temporarily extend the existing $44.10 per barrel price cap on Russian crude oil for another week, until July 23.
Greece was not alone. Austria also refused, as it is demanding that a specific Russian investment company be removed from the sanctions list so its unfrozen assets can be used to compensate Austria’s Raiffeisen Bank. One of Austria’s largest banks, Raiffeisen, had been Russia’s largest foreign lender and has been losing billions because of the sanctions.
