EU compromises on Russian LNG restrictions to pass 21st sanctions package

European Union envoys agreed on a 21st sanctions package against Russia over its war in Ukraine, imposing curbs on its banking sector while also finding a compromise with Greece to soften restrictions on Russian LNG, EU diplomats said on Thursday.

The package, which the EU said was its biggest for four years, granted a one-year exemption with automatic renewal allowing EU companies to transfer Russian liquefied natural gas to third countries, after demands from Greece. Sanctions require unanimity to be adopted.

"Member states showed solidarity with Greece and it's expected that Greece will do the same with others in the future," one EU diplomat said.

Athens said a planned ban on transfer services for Russian LNG would simply shift market share outside Europe and would not impact Russian revenues. The measure was due to come into effect on January 1. EU imports of Russian LNG will still be banned from that date.

Greece dominates Europe's LNG carrier market and is among the biggest players globally, competing with Japan, China and the United States.