The European Union is intensifying efforts to curb the Russian war campaign in Ukraine. After more than two years since the invasion began, Brussels is now targeting Russian liquefied gas (LNG) for the first time, which is a significant revenue source for Moscow. While the European External Action Service is not proposing a complete ban on imports to the EU, it is suggesting re-exporting the gas to countries outside the EU.
The proposal, to be discussed by EU Member States, could have a major impact on countries like Spain, the largest European importer of Russian LNG. Last year, the EU purchased 18 billion cubic meters from Russia, with around 22% of European LNG imports ending up being re-exported to other countries. The proposal aims to prohibit the transshipment of Russian LNG through EU facilities to third countries, including ship-to-ship and ship-to-shore transfers.
The EU recognizes that Russia profits significantly from the sale and transportation of LNG, and the proposed sanctions on re-exporting aim to disrupt this revenue stream. The plan includes measures to prohibit new European investments in the Russian LNG sector, impose tougher sanctions on Russian ships, and restrict the use of European ports by ships contributing to Russia’s war efforts in Ukraine.
If implemented, these sanctions could greatly impact companies like Naturgy, which has a significant contract for the supply of Russian LNG. Despite
