For the first time, the European Union (EU) has included Russian liquefied natural gas (LNG) in its new sanctions package. However, despite demands from the EU Parliament, the company’s own imports are not to be stopped. The permanent representatives of the EU states discussed the possibility of stopping Russian LNG deliveries to third countries through EU ports.
Russia operates icebreaking tankers to transport LNG from the Siberian Yamal Peninsula to be transported away, often only traveling to European ports where the cargo is taken over by regular tankers for onward transport. The sanctions aim to prevent this model, affecting only around a fifth of Russian liquid gas imported to Europe. The rest is imported for consumption in EU countries, with no access to direct exports to third countries.
According to the Institute for Energy Economics and Financial Analysis (IEEFA), EU states spent over 8 billion euros on Russian LNG in 2023. Russian LNG accounted for about 8.8 percent of European gas imports in the first quarter, with an additional 12 percent coming through the Turkstream and Ukraine pipelines. Russia was the EU’s third largest gas supplier after Norway and the USA.
As part of the sanctions package, companies based in the EU will be banned from investing in Russian LNG projects. Russia traditionally exports gas through pipelines and does not have enough liquefaction plants for tanker shipments, so European investors will no longer participate in expansion plans.
