The EU has decided not to impose a ban on direct purchases of Russian LNG

The European Union will not impose sanctions on direct purchases of Russian liquefied natural gas.

Source. Bloomberg reports.

The EU is considering a ban on the re-export of Russian liquefied natural gas (LNG) to third countries through European ports as part of a new package of anti-Russian sanctions, but the EU will not ban direct purchases of LNG, several sources familiar with the situation said.

The new EU sanctions will target Russia's shadow fleet. In addition, the EU plans to impose sanctions on several Russian LNG projects: "Arctic LNG 2 and LNG terminals in Ust-Luga and Murmansk region.

Last Monday, it became known that the EU had started preparing the 14th package of sanctions against Russia, with energy-related measures to be among its most important provisions. Before meeting with his colleagues, Swedish Foreign Minister Tobias Bylstrom announced two provisions – a ban on LNG imports and measures against the shadow fleet that exports oil in violation of the $60 per barrel price ceiling.

"We will make sure that the package includes a ban on imports of liquefied natural gas, as well as measures to limit the Russian shadow fleet," Bildström said.

Purchases of Russian LNG by EU countries rose to a record level last year.

According to Kpler, the EU purchased 15.5 million tonnes of LNG (22 bcm) from Russia last year, up almost 40% from 2021.

This year, according to S&P Global, as of 9 April 2024, deliveries totalled 4.89 million tonnes: this is more than 16% of the EU's total LNG imports, while in the first four months of 2023, the share of Russian gas was 12.74%.

The main buyers are countries with large LNG receiving and regasification capacities – Spain, France and Belgium: the share of Russian gas in their total LNG imports this year was 32%, 49% and 27%, respectively.

Background. As reported, South Korea, Japan and France have refused to build tankers for the Russian Arctic LNG 2 project.