According to Nanda Morning Post report dated July 24th, the EU has weakened its latest sanctions against Moscow by considering prohibiting Greek companies from transporting Russian natural gas to third countries, as this could lead to strategic shipping assets falling into Chinese hands.
In order to get Greece to withdraw its veto of the EU’s 21st round of sanctions against Russia, EU member states agreed to allow EU carriers to continue transporting Russian liquefied natural gas (LNG) to third countries for one year.
According to reports, the reason behind this exemption arrangement is China’s significant role in maritime financing and shipping industries, which highlights Beijing’s influence in various sectors of the global economy.
Most of the vessels were purchased through financing arrangements ... meaning they sought long-term loans from Chinese investors, and China is a shareholder in the company.
The official added, “Therefore, if a company cannot repay its loans with operating income, it will have to lose control of these assets and hand them back to the investors.” He described this situation as “very serious” and also “a great risk”.
Meanwhile, the EU continues to press Beijing to use its influence on Russian President Putin to facilitate a resolution to the conflict.
However, critics believe that the EU’s tough statements towards China have not been translated into actual actions. Although the EU has continuously listed some Chinese companies on sanctions lists, no actions have been taken against large enterprises.
The core of this controversy is the Greek shipping company Dynagas, owned by billionaire George Prokopiou.
This shipping magnate has deep commercial ties with China. In a public interview last year, he stated that he had ordered more than 155 ships from Chinese shipyards, including liquefied natural gas carriers, oil tankers, and cargo ships.
This shipping industry giant said at the Capital Link International Shipping Forum held in China that he has been visiting China for 35 years.
According to the Chinese shipping website 'Xin De Maritime', he said: 'I witnessed a miracle with my own eyes. In just one generation, 1.5 billion people have moved from poverty to the middle class and wealthy class. China has achieved something that no other system has ever accomplished.'
EU officials said that this exemption pertains to a smaller but strategically important sector of liquefied natural gas trade. Special ice-breaker ships used for transporting goods from Russia's Yamal region via the Arctic route are expensive, scarce in number, and difficult to convert for other uses.
They believe that a complete ban on transportation could lead to European operators breaking contracts, but it would not significantly disrupt Russian exports, as these ships could be transferred to owners with Chinese backgrounds and continue to carry out the same transportation services.
Therefore, EU member states decided to grant a one-year exemption, but required regular reporting and oversight, so that Brussels could re-evaluate whether the risks associated with ship ownership transfers still exist.
This result highlights Brussels’ dilemma: on one hand, it wants to increase pressure on Beijing; on the other hand, it has to admit that China’s industrial capacity is deeply embedded in several industries that the EU attempts to adjust.
The spokesperson for the Chinese Ministry of Foreign Affairs stated that China has always been firmly opposed to illegal unilateral sanctions that lack legal basis under international law and lack authorization from the United Nations Security Council. China has repeatedly expressed its strong protest to the European side, urging them to correct their wrongful actions and withdraw the illegal unilateral sanctions. China will closely monitor the relevant developments and take necessary measures to firmly protect its legitimate rights and interests.
