The European Commission is expected to propose new sanctions on Russian liquefied natural gas (LNG) in its next sanctions package, according to three EU sources. The proposal would not ban imports of Russian LNG to Europe, but instead target trans-shipments and impose sanctions on three Russian LNG projects that are not yet operational.
The proposed measures are:
Banning trans-shipments of Russian LNG in the EU. Trans-shipments involve moving LNG from one vessel to another, which then sails to its final destination. These transfers usually take place in port areas.
Imposing sanctions on three Russian LNG projects – Arctic LNG 2, Ust Luga, and Murmansk – that are not yet operational.
The European Commission is in the final stages of drafting the proposal and is currently engaged in informal talks with member states this week. The Commission declined to comment on the details.
The EU has so far stopped short of prohibiting LNG imports from Russia, despite repeated calls by the Baltic states and Poland to do so. However, imports of Russian LNG to Europe have increased since the war in Ukraine began, with Belgium, France, and Spain being the biggest takers.
EU statistics and Reuters calculations show that the rise in LNG has pushed the share of Russian gas in EU supply back up to around 15% after pipeline imports from Russia’s state-owned Gazprom plunged to 8.7% from 37% of EU gas supply.
Analysts have said that existing sanctions and difficulties securing vessels mean Russia is unlikely to meet a government target to commission 100 million metric tons of LNG capacity by 2030. Actual capacity in 2030 is expected to be as much as 60 million tons short of that goal, according to Rystad Energy.
The sources said there would likely be more support to sanction the projects than to ban trans-shipments when the final proposal is formally presented to EU member states.