The European Union is taking a new approach to curb the Russian war campaign in Ukraine by focusing on Russian liquefied gas (LNG) for the first time. Brussels is not proposing to ban imports of Russian LNG to the EU, but instead suggests re-exporting it to countries outside the EU. This measure could have a significant impact on countries like Spain, the largest European importer of Russian LNG, and the largest re-exporter in the world.
Last year, the EU purchased 18 billion cubic meters of LNG from Russia, with 22% of European LNG imports being re-exported. The proposal aims to prohibit the provision of refueling services for Russian LNG transshipment operations in EU facilities, in an effort to disrupt Russian revenue streams from gas sales.
The plan also includes prohibiting the import of Russian gas through EU terminals not connected to the European network, as well as tougher sanctions on Russian ships. Additionally, the EU will prohibit foundations, think tanks, and political parties from receiving Russian funds.
If the sanctions extend to all imports of Russian LNG, companies like Naturgy could be heavily impacted. The Spanish government has expressed a desire to reduce imports of Russian LNG, but currently lacks the power to impose sanctions or prohibit imports due to EU regulations.
The proposal will be debated by Member States and aims to disrupt Russian revenue streams and reduce its ability to wage war against Ukraine. The EU’s efforts to tackle Russian aggression and destabilization tactics through hybrid warfare are intensifying, with a focus on cutting off key sources of income for the Kremlin.
