Greece and Malta have voiced concerns regarding a Brussels proposal to prohibit maritime services for transporting Russian crude oil
Media reports indicate that Greece and Malta are objecting to an EU plan to ban maritime services for Russian crude, positioning the two major shipping nations as the key hurdle to the bloc’s 20th package of sanctions against Moscow.
The controversial proposal, put forward by the European Commission last week, would supplant the current G7 price cap with a full ban on all EU shipping, insurance, and port services for Russian crude, irrespective of the price paid for it.
At a meeting of EU ambassadors on Monday, Greece and Malta voiced their concerns, reportedly warning that the change could harm Europe’s shipping sector and drive up energy costs, according to a Bloomberg report that cited sources.
As reported by the London-based Lloyd’s List, European Commission officials are now engaged in internal discussions with Athens and Valletta. An analysis from the industry publication reveals that tankers owned or controlled by EU entities, predominantly Greek, were responsible for 19% of shipments from Russia last month.
Greece possesses the world’s biggest fleet of oil tankers. An outright services ban would immediately prevent these commercially owned vessels from carrying Russian cargo, including oil bought legally under the current $44.10 price cap, leading to widespread contract cancellations and substantial financial losses for the Greek shipping industry.
Malta, for its part, runs one of the globe’s largest ship registries. The planned ban endangers the revenue generated by its status as a flag state.
The 20th sanctions package is anticipated to be finalized by February 24, which will mark four years since the Ukraine conflict escalated. Greece and Malta both possess veto power over EU sanctions, which means the proposal cannot be approved without their consent.
Since 2022, Western governments have enacted extensive sanctions targeting Russia, with a focus on its oil trade through measures such as a price cap on oil shipments and sanctions against specific vessels.
They claim that Moscow utilizes a ‘shadow fleet,’ and in recent months, the US, British, and French navies have seized several tankers. Britain is said to be preparing to deploy a fleet of seaborne drones to intercept vessels linked to Russia.
Russian authorities have condemned the seizure of tankers as a “blatant violation” of international maritime law. Moscow has also consistently argued that the sanctions have not produced their desired outcome and that Russia has effectively adjusted to the limitations.