The European Union's review of the Greek shipping carve-out is long overdue. What was once a pragmatic exception has become a glaring loophole that undermines the credibility of the entire sanctions regime. By allowing Greek-flagged tankers to continue transporting Russian oil, the EU has sent a mixed message to Moscow and to its own member states about its resolve to enforce economic pressure.
Critics point to mounting evidence that the carve-out has been exploited. Greek-owned vessels have been observed carrying oil sold above the G7 price cap, using complex ownership structures and flag changes to evade oversight. This not only provides revenue for Russia's war effort but also encourages other countries and companies to seek similar exemptions, weakening the sanctions architecture. The EU cannot claim to be serious about punishing aggression while letting a key member state profit from trade with the aggressor.
The carve-out also creates an unfair advantage for Greek shipping companies over competitors from other EU countries that have adhered strictly to the sanctions. This erodes trust within the bloc and feeds narratives that some members are putting their own economic interests above collective security. If the EU fails to close this loophole, it risks becoming a laughingstock in international diplomacy.
Moreover, the argument that the exemption prevents oil price spikes is increasingly weak. Global oil markets have adjusted, and alternative shipping capacity exists. The price cap mechanism itself is designed to maintain supply while capping profits—so the carve-out is redundant. The EU should instead invest in enforcement technologies and work with allies to track vessels that violate the rules. Continuing the carve-out sends exactly the wrong signal: that sanctions are optional when they inconvenience powerful industries.