The European Commission is contemplating imposing sanctions on Russian liquefied natural gas (LNG), as reported by two EU diplomats, POLITICO reports. This action would represent the first instance where Brussels has decided to target Moscow’s gas sector. The Commission, which serves as the EU’s executive body, is currently in the process of formulating a 14th package of sanctions against Russia, more than two years after Russian President Vladimir Putin deployed troops into Ukraine.
The potential new measures may involve limitations on three Russian LNG projects, as well as on the re-export of Russian LNG from EU ports, according to the diplomats. Although Brussels has already enforced a comprehensive ban on Russian coal and seaborne crude oil exports to the EU, reaching a consensus on gas restrictions has proven challenging due to opposition from countries like Hungary, which heavily rely on imports from Moscow.
Nevertheless, the EU has significantly decreased its reliance on Russia for gas imports by approximately two-thirds since the onset of the full-scale invasion. This reduction has been achieved through a combination of abrupt cutoffs from Moscow and transitioning to suppliers from Norway and the U.S. Even though Russian LNG accounted for just 5 percent of the EU’s energy consumption last year, the bloc paid the Kremlin an estimated €8 billion for its exports, with the majority arriving at ports in France, Spain, and Belgium.
The proposed measures would not prohibit the purchase of Russian LNG within the bloc but rather target shipments that arrive at EU ports only to be redirected elsewhere. EU ambassadors are scheduled to deliberate on the Commission’s new proposal in early next month.