EU imposes sanctions on Russian LNG imports, but not through third countries

The European Union (EU) has imposed new sanctions on Russia’s liquefied natural gas (LNG) imports for the first time, targeting only around a fifth of the country’s liquid gas exports to Europe. However, demands from the EU Parliament have not been met as Russian LNG imports to third countries through EU ports are not being stopped.

Russia operates icebreaking tankers to transport LNG from the Siberian Yamal Peninsula to European ports, where it is then transferred to regular tankers for onward transport. The sanctions aim to prevent this model of transportation and limit Russian LNG imports to Europe. According to the Institute for Energy Economics and Financial Analysis (IEEFA), EU states spent over 8 billion euros on Russian LNG in 2023, accounting for about 8.8 percent of European gas imports in the first quarter.

As part of the sanctions package, companies based in the EU will be banned from investing in Russian LNG projects. Russia traditionally exports gas through pipelines and does not have enough liquefaction plants for tanker shipments, so European investors will no longer participate in expansion plans. Despite these measures, Russia remains a significant player in the global gas market and a key supplier to Europe.