EU countries ask Commission to assess impact of planned sanctions on Russian LNG

Possible sanctions targeting Russian-origin liquefied natural gas (LNG) have once again come into focus in recent weeks. However, diplomats speaking to Reuters said it could take several weeks to agree on a new sanctions package.

According to the diplomats, the proposed measures have broad support, including restrictions on Russian liquefied natural gas. However, some countries, including Belgium, Germany and France, have asked the European Commission to assess whether restrictions on transshipments of Russian LNG at European terminals would have a greater impact on Russia’s economy than on the EU’s, according to Reuters.

"There is broad support, but mainly questions. This package is just stitches – we have never done anything like this before," one diplomat said of the LNG measures under discussion, according to Reuters.

None of the countries contacted, or the European Commission, commented on these questions, according to Reuters. Negotiators are now trying to finalise another sanctions package before Hungary takes over the EU presidency in July. Hungary has opposed some sanctions targeting Russia in the past. EU sanctions require unanimous approval.

As the war drags on, the EU is seeking to further curb revenues for the Russian economy, for example by trying to prevent the circumvention of existing sanctions. Russia recently said it would try to find any way around illegal sanctions targeting its LNG sector.

"We were genuinely surprised by the resilience of the Russian economy, but it has been damaged... Russia is transforming into a kind of war economy," the diplomat added.

EU countries are also discussing a separate package of sanctions against Belarus, particularly aligning them with sanctions against Russia, according to the news agency. This should prevent or limit the re-export of European products to Russia via Belarus.