Bloomberg: EU does not plan sanctions on Russian LNG, will focus on reducing dependence

The European Union is unlikely to propose phasing out imports of liquefied natural gas (LNG) from Russia as part of a new package of sanctions targeting Moscow for its invasion of Ukraine. Citing people familiar with the matter, Bloomberg reported this today. Instead of sanctions, it plans to present a proposal in February on how to gradually end its dependence on Russian fossil fuels.

A group of ten EU countries is pushing for tougher measures against Russia by imposing restrictions on natural gas and LNG. However, sanctions imposed by the bloc require unanimity, which is difficult to achieve given Hungary’s vocal opposition and the continued dependence of some other countries on Russian gas.

LNG remains one of Europe’s last major energy dependencies on Russia after pipeline gas deliveries were halted. Last year, the EU imported record volumes of LNG from Russia, with France, Spain and Belgium the largest importers.

European policymakers are avoiding tighter restrictions on Russian LNG imports to prevent price shocks that have adversely affected European industry in recent years. However, new supplies from facilities in the US and Qatar, now under construction, are expected in 2026 and 2027. This should help ease prices.

The United States and the European Union are gradually imposing sanctions on some Russian LNG projects to limit Moscow’s plans to expand exports. But these efforts have done little to reduce the region’s interest in supplies of the commodity from Russia.

The EU plans to approve its 16th package of sanctions against Russia on 24 February. Two days later, it is expected to present a plan to phase out Russian fossil fuels. The plan will then outline measures to be taken to end imports, but detailed legislation is likely to be introduced only later.