The European Union recently implemented new sanctions against Russia, including restrictions on the import of liquefied natural gas (LNG). This marks the 14th set of sanctions imposed since February 2022, with key member states like Belgium, France, and Spain serving as entry points for Russian LNG. Despite ongoing conflict in Ukraine, some EU countries continue to purchase Russian LNG, with the latest package aiming to limit Russia’s revenue sources.
Negotiations among EU ambassadors led to the approval of these sanctions after several delays. While the sanctions do not ban the purchase of Russian LNG outright, they prohibit re-exporting the gas to other countries. Companies will still be able to buy Russian LNG, but they cannot sell it to third parties. The aim is to restrict Russia’s ability to profit from the sale of LNG while its troops are making territorial gains in Ukraine.
The Centre for Research on Energy and Clean Air (CREA) estimates that the EU paid €8.3 billion for 20 billion cubic metres of Russian LNG in 2023, constituting 5% of total gas consumption. A significant portion of these supplies was trans-shipped globally, with shipments reaching countries like China, India, and Turkey. The new sanctions seek to limit this practice and prevent Russian LNG from being distributed to other EU member states.
In addition to restrictions on the sale and re-export of Russian LNG, the EU’s latest sanctions target three LNG projects in Russia that are not yet operational. These projects, including Arctic LNG 2, Ust Luga, and Murmansk, are aimed at further limiting Russia’s ability to secure funding for its military operations in Ukraine. Moreover, the sanctions include measures to crack down on circumvention and close loopholes that have previously been exploited by Russia.
Some member states, such as Germany, had initially raised concerns about certain aspects of the sanctions, including the “no Russia clause” which obligates companies to prevent circumvention. However, after prolonged negotiations and discussions to address these reservations, Germany eventually agreed to the deal. The EU has been working to strengthen its sanctions regime in response to Russia’s actions in Ukraine, with particular attention paid to preventing the exploitation of loopholes in previous measures.
The new measures also reflect the EU’s efforts to limit Russia’s ability to finance its military operations through the sale of LNG and other resources. By restricting the sale and distribution of Russian LNG, the EU aims to put pressure on Russia and limit its revenues from key export industries. The sanctions are part of a broader strategy to support Ukraine and deter further aggression by Russia, with EU member states working together to coordinate their response to the ongoing conflict in Eastern Europe.
