A Fragile Equilibrium in Athens
Greece's relationship with Ukraine continues to face fresh complications, even as the two countries work to resolve lingering tensions. The situation reflects a broader challenge confronting European nations: how to support Ukraine militarily and economically without inflicting significant damage on their own domestic industries.
The European Commission is in the process of revising its proposed 21st package of sanctions against Russia after the original draft was rejected last week by Greece and several other EU member states. At the heart of the dispute is a proposal that would bar EU-flagged ships from transporting Russian liquefied natural gas (LNG) to non-EU countries. The proposal comes despite the fact that EU nations actually increased their own Russian LNG imports by 11 percent in the first half of 2026 compared to the same period the previous year.
Shipping Industry at Stake
Athens has pushed back firmly against the proposed measures. Greece owns approximately 60 percent of the EU's total shipping fleet, and officials argue that the restrictions would unfairly burden the Greek maritime sector far more than other European countries. Shipping, alongside tourism, forms the backbone of Greece's economy, together accounting for more than a quarter of the nation's GDP.
The debate over sanctions is not the only friction point in Greek-Ukrainian relations. In May, a fisherman on the island of Lefkada in the Ionian Sea discovered a Ukrainian naval drone loaded with explosives. Ukraine has deployed such unmanned maritime devices to strike tankers operating within Russia's so-called shadow fleet. Greek authorities expressed alarm at the find.
A senior Greek government official described the incident as deeply concerning, noting that Athens had no desire to see Greek territory become a staging ground for warfare. Ukrainian officials subsequently issued an apology, allowing diplomatic channels to reopen.
Building Bridges Through Reconstruction
Despite the tensions, Greece and Ukraine have been making measurable progress in other areas. Greece's Deputy Foreign Minister Haris Theoharis recently signed the country's first formal memorandum detailing its contribution to Ukraine's reconstruction effort. The two governments are now working toward a broader intergovernmental agreement.
Greek companies have already undertaken at least four projects to restore hydroelectric power stations and other critical infrastructure damaged during the conflict. Funding is expected to come from a combination of Greek public money, EU resources, and private investment.
Theoharis noted that when he assumed his role roughly a year ago, collaboration with Ukraine was essentially nonexistent. He recalled attending a reconstruction conference in Rome with few Greek businesses in tow and no agreements on the table. Since then, the pace has accelerated considerably.
Greece's northern port of Alexandroupolis has also played an increasingly strategic role, serving as a transit hub for US military equipment bound for Ukraine since 2022. Since November of last year, it has additionally supplied Ukraine with LNG following Russian strikes on Ukrainian energy infrastructure.
Military Aid and Security Concerns
According to data from the Kiel Institute for the World Economy, Greece has provided around 170 million euros in direct bilateral military assistance to Ukraine, separate from contributions channeled through NATO. Through EU institutions, it has contributed a further 1.14 billion euros in combined military and financial support, plus roughly 9 million euros in humanitarian aid.
While Greece's per capita contributions trail those of smaller Baltic states — which have committed as much as 0.25 percent of their GDP — Athens has delivered this support while managing the aftermath of a severe economic crisis and adhering to strict budget balancing requirements.
A more pressing concern, however, is Russia's capacity for hybrid warfare. Greek officials acknowledge that the country remains vulnerable to cyberattacks and infrastructure sabotage, and that its defenses in these areas are still being developed. With a general election expected between late 2026 and early 2027, concerns about Russian-backed disinformation campaigns add another layer of political sensitivity.
Drone Deal Stalls Amid Caution
These interlocking vulnerabilities have slowed Greece's progress on a potential drone manufacturing partnership with Ukraine. A joint declaration signed by both countries' leaders in November 2025 pledged closer cooperation on maritime unmanned systems, but no formal agreement has been announced since.
A senior Greek official was candid about the hesitation, noting that any such deal would effectively mean Greek-produced drones being used in combat against Russia. The uncertainty surrounding future US-Russia diplomatic engagement adds further complexity to Greece's calculations.
A Historical Echo
The contrast between Greek caution and Ukrainian admiration for Greek history has not gone unnoticed. Several Ukrainians have drawn parallels between their own struggle and Greece's hard-won independence from the Ottoman Empire in 1821. One Ukrainian academic living in Greece as a refugee noted that many of her compatriots view the Greek example as a source of inspiration, pointing to it as proof that a small nation can succeed against a far larger adversary.
Source: Al Jazeera
