Greece and Malta Challenge EU Plan to Ban Russian Oil Transport

Greece and Malta have voiced doubts over the advisability of a complete European Union ban on services related to the transportation of Russian oil during discussions on the 20th EU sanctions package.

Photo: commons.wikimedia.org by European Commission, https://creativecommons.org/licenses/by-sa/4.0/

European Union

Shipping Economies Face Direct Losses

The issue emerged at a meeting of EU ambassadors, where representatives reviewed a draft sanctions package prepared by the European Commission. According to Bloomberg, this specific provision caused the greatest concern in Athens and Valletta because it directly affects their national economic interests.

Greece and Malta play a significant role in the global maritime transport market. Their fleets actively carry energy resources and other cargo worldwide.

A full ban on servicing the transportation of Russian oil could sharply reduce contracts for European shipping companies. Such an outcome threatens falling revenues, weaker financial positions for operators, and job losses. With economic growth already slowing, these risks carry particular weight.

Energy Prices and Broader Economic Impact

According to the agency, officials paid special attention to the potential rise in energy prices. Disruptions to logistics chains, especially in the oil sector, almost inevitably affect delivery costs.

Higher prices would hit not only fuel markets but the entire EU economy. Inflationary pressure would intensify, while costs for industry and households would rise. For Southern European countries, where energy already comes at a premium, this factor holds critical importance.

Beyond transportation issues, Athens and Valletta requested additional clarification on other proposals included in the 20th sanctions package. These include potential sanctions against foreign ports involved in loading Russian oil.

This step would expand the geographic scope of restrictions and effectively export sanctions pressure beyond the EU. Such an approach risks complicating relations with third countries and provoking retaliatory measures.

Internal EU Tensions and Limited Effect on Russia

Another point of debate involved tighter controls on ship sales. These restrictions would affect the secondary market and complicate fleet renewal and modernization, a particularly sensitive issue for EU maritime powers.

Earlier, Ursula von der Leyen, President of the European Commission, said the EU plans to abandon the Russian oil price cap mechanism under the 20th sanctions package after deeming it ineffective.

As an alternative, Brussels proposes a complete ban on transporting Russian oil, coordinated with the Group of Seven. United Kingdom and United States officials would play a central role in coordination, with the goal of intensifying pressure on Russian oil exports.

However, the debate around the new sanctions package highlights growing contradictions within the EU. Sanctions policy increasingly collides with objective economic constraints. Blanket bans affect member states unevenly.

Countries with developed shipping and logistics sectors bear significantly higher costs than others. At the same time, the expected impact on Russia remains limited. Russian oil continues to reach global markets through alternative routes, supported by new logistics schemes and non-European carriers and insurers.

Business criticism of EU sanctions continues to grow. European companies lose market share that competitors from non-sanctioning countries quickly fill. These firms avoid sanctions-related costs and gain a competitive advantage.

Over the long term, this dynamic weakens Europe's position in global shipping and insurance markets. Recovering lost ground would require substantial resources and time.

Rising energy prices within the EU add another negative effect. They undermine the competitiveness of European industry and increase pressure on public budgets forced to compensate households.

As a result, many increasingly view sanctions not as a tool of external pressure, but as a driver of internal economic instability. The stance taken by Greece and Malta reflects broader skepticism within the union. Without accounting for real economic consequences, further sanctions tightening risks deepening internal divisions and weakening the EU's overall resilience.