Brussels 20.06.2024 Today the European Union agreed to endorse a new package of sanctions against Russia, targeting for the first time supplies of liquefied natural gas (LNG), which several member states continue to purchase despite the war in Ukraine.

The new set of sanctions represent the 14th package enforced since February 2022 and appear just a few days before the Hungarian presidency of the EU Council comes into power.

The package is the result of protracted negotiations between the EU member-states ambassadors, who spent weeks in talks of over highly technical details. The approval was delayed several times over the reservations voiced by several countries, including Hungary, which had previously vowed to block any sanctions in the energy sector.

The experts in the field of gas market have questioned whether the measures will have any meaningful impact as Europe is still purchasing Russian gas. Meanwhile, trans-shipments from the EU ports to Asia level up to just 10% of all Russia’s LNG exports.

Under new measures the EU companies will still be allowed to purchase Russian LNG but be prohibited from re-exporting it to other countries, a practice known as trans-shipment.

The Centre for Research on Energy and Clean Air (CREA), an independent organisation that tracks Russian fossil fuels, estimates that in 2023 the bloc paid €8.3 billion for 20 billion cubic metres (bcm) of Russian LNG, representing 5% of the total gas consumption.

Belgium, France and Spain were the main entry points for Russian LNG.

Around 22% of these supplies (4.4 bcm) were trans-shipped globally, with 1.6 bcm sent to other member states, CREA informs, and the rest was directed to China, India, Turkey and other clients.

The figures reflect the West’s leading role in cargo insurance and shipping services: last year, the maritime industry of G7 countries handled 93% of Russia’s LNG exports, a transport valued at €15.5 billion.