Baulking at shipping sanctions, Greece balances Ukraine aid, fear of Russia

Greece faces competing pressures as European Union members debate a 21st sanctions package targeting Russian liquefied natural gas shipments. Athens argues that restricting EU vessels from carrying Russian LNG to third parties would unfairly burden Greek shipping interests, which dominate EU maritime capacity. The objection has stalled the European Commission's original proposal, forcing reconfiguration of the sanctions framework.

The shipping industry dispute reflects broader economic sensitivities for Greece, where maritime transport and tourism together constitute over a quarter of national economic output. A separate incident in May, when a Ukrainian naval drone laden with explosives was discovered near the island of Lefkada, highlighted security concerns. Greek officials expressed worry about potential environmental damage and the prospect of Greek territory becoming a theater for military operations.

Despite these tensions, Greece and Ukraine have moved toward closer cooperation. Deputy Foreign Minister Haris Theoharis reported that Ukraine's leadership acknowledged responsibility for the drone incident and apologized, allowing diplomatic channels to reopen. The two countries signed a memorandum on Ukraine's reconstruction, with Greek companies already undertaking at least four infrastructure projects including hydroelectric power station rebuilding, funded through Greek taxpayers, EU resources, and private investment.

Theoharis noted significant progress since taking office a year earlier, when Greek business participation in reconstruction efforts was minimal. He cited Ukrainian officials' acknowledgment of Greece's rapid mobilization. Additionally, Greece's port of Alexandroupolis has served as a critical conduit for US military aid to Ukraine since 2022 and began supplying Ukrainian LNG in November following Russian strikes on Ukrainian energy infrastructure.