Russia’s LNG exports from EU ports are being targeted by new economic sanctions aimed at limiting the country’s opportunities to export LNG to Asia. The package of sanctions was reached after long negotiations led by Belgium in Brussels and is seen as powerful and significant.
While the details of the sanctions are not yet fully known, measures are expected to focus on import, financing, and handling of Russian LNG in EU ports. Russia currently relies heavily on LNG as a key source of income after pipeline gas supplies to Europe collapsed.
Coastal states in the Baltic Sea, including Finland, have pushed for sanctions on Russia’s shadow fleet, which involves non-Russian tankers used to circumvent oil price ceilings set by Western countries. This practice poses economic concerns and increases the risk of environmental damage in the region. The sanctions package is likely to include measures targeting sea, road, and air traffic to prevent evasion of these restrictions.
To further prevent circumvention, the sanctions aim to restrict subsidiary companies of European firms in third countries from exporting sanctioned products to Russia. This issue was one of the most challenging aspects of the negotiations, with Germany particularly concerned about the impact on its companies. Technology exports to Russia are also expected to face increasing restrictions as part of the sanctions.
The official approval of the sanctions is scheduled for a meeting of EU foreign ministers on Monday, after which the full package will be published. The focus on energy exports signifies the EU’s efforts to economically pressure Russia in response to its actions.
