The EU proposes the first sanctions on the Russian LNG sector – POLITICO

The sanctions would also prohibit EU involvement in future LNG projects in Russia. “Such a solution limits the expansion of Russia’s LNG production capacity, and thus limits Russia’s revenues,” the application argues.

Additionally, the Commission, which is the EU’s executive branch, wants companies to share information more widely about LNG imports via Moscow.

The move marks the first time the bloc has targeted Moscow’s lucrative gas sector and is part of Brussels’ 14th sanctions package on Russia more than two years after its invasion of Ukraine. Mounting evidence shows that Western efforts to drain Moscow’s fossil fuel revenues are woefully ineffective, with the oil price ceiling largely failing and sanctions evasion widespread.

Although the fight against LNG marks a significant shift in EU strategy, the proposed penalties will only affect a fraction of Russia’s fossil fuel revenues. Last year, resale of Moscow LNG in the EU accounted for just a quarter of Russia’s total revenues from trade in highly chilled gas. Experts say sanctions on future LNG projects will be mainly precautionary because none are currently sending cargo to Europe.

EU ambassadors are due to discuss the measures on Wednesday. There is growing political support from influential EU heavyweights such as Germany and Italy for a strike against Russian LNG, but Hungary – which is largely dependent on Russian energy – has blocked all gas sanctions in the past.

Untouched gas

Over the past two years, the EU has taken extraordinary steps to avoid Russian energy, imposing bans on its coal and seaborne oil.