EU abandons efforts to ban Russian LNG imports, apparently also due to talks with the US

European Union officials are no longer considering a ban on imports of liquefied natural gas (LNG) that still flows to local markets. The main reasons are divisions among EU member states, as well as uncertainty over alternative sources. Another factor is apparently the fear of weakening the EU’s negotiating position. The European Commission is nevertheless still planning to present a plan to end Europe’s dependence on energy imports from Russia.

A possible ban on imports of Russian LNG has been a long-standing and frequently discussed topic within the EU since the outbreak of the war in Ukraine. Despite a significant drop in pipeline gas supplies to Europe, substantial volumes of natural gas are still flowing from Russia. A significant share of these volumes consists of LNG deliveries.

Discussions about a possible ban on Russian LNG imports have often been part of negotiations on sanctions packages. According to Reuters, this was most recently the case during talks between the European Commission and member states on the 16th package at the beginning of this year. The European Commission is expected to present another set of sanctions against Russia, the 17th so far, by the end of June.

The gap left in the market by Russian gas has been partly filled by higher LNG imports from the US, while current US President Donald Trump often urges Europe to increase its purchases of energy commodities further. According to Reuters, US officials see this as one possible bargaining chip in efforts to secure the removal of recently announced tariffs. The United States has not yet fully specified its demands.

"The EU is trying to do its part. It is now up to the United States to define its position. Like any negotiation, this one must be a two-way street," the European Commission said, according to Reuters.

One official told Reuters that the European Commission does not want to risk losing Russian LNG because of sanctions, as this could weaken its negotiating position. The Commission, like the member states, is also aware of the risk of replacing one dependency with another, specifically dependence on the United States. Last year, the US was Europe’s third-largest supplier of natural gas, after Norway and Russia.