In the new sanctions package from the EU, Russian liquefied natural gas (LNG) is being targeted for the first time. However, the EU Parliament’s demand to stop the company’s own imports is not being implemented. Discussions have focused on halting Russian LNG deliveries to third countries through EU ports.
Russia uses icebreaking tankers to transport LNG from the Siberian Yamal Peninsula to European ports, where regular tankers take over for further transport. This allows for more cargo to be transported and better utilization of LNG terminals. The sanctions aim to prevent this model, affecting only about a fifth of Russian liquid gas imports to Europe.
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% of European gas imports in the first quarter, with additional supplies coming through pipelines like Turkstream and Ukraine. Russia is the EU’s third-largest gas supplier after Norway and the USA.
As part of the sanctions package, EU-based companies will be prohibited from investing in Russian LNG projects. Russia traditionally exported gas through pipelines, and European investors will no longer participate in expanding liquefaction plants.