Brussels has shelved its plans to ban the EU shipping industry from carrying Russian crude as it struggles to push through its latest sanctions package because of anxiety among some member states about the economic impact of the measures.

A proposal targeting shipping that was introduced last week has been dropped by the European Commission following hard lobbying from Malta and Greece, which is home to more than half of the EU flag tonnage, said several people familiar with the talks.

Separately, Hungary is withholding its backing from a proposed EU ban on imports of Russian oil, even after talks on Monday evening between commission president Ursula von der Leyen and Hungary’s prime minister, Viktor Orbån. A commission spokesperson insisted the discussions showed “there is a path forward”.

The EU is attempting to increase economic pressure on Vladimir Putin’s regime by targeting its lucrative oil industry, but the proposed measures risk hitting a number of EU economies hard. As a result, Brussels is being forced to agree to numerous carve-outs and exemptions to win over all 27 member states.

The proposed shipping ban was seen as a way of making it more difficult for Putin to mitigate the effects of an EU oil ban by transporting crude to other countries around the world.

However, some member states argued in recent days that an effective shipping ban should involve other countries such as the US and UK, particularly if Washington could exert influence over nations where many vessels are flagged, such as Liberia, the Marshall Islands and Panama. The lack of agreement among the G7 nations was central to the proposal being dropped.

The EU’s executive arm has also proposed a ban on European companies providing the services, including insurance, that are needed to transport Russian oil around the world. That provision is expected to survive despite a reluctance from some member states, the people said.