The countries of the European Union (EU) address the possibility of restricting the reloading and transfer of Russian liquefied natural gas (LNG) in European ports within the framework of the fourteenth package of sanctions against Russia that they are already studying as a response to the invasion of Ukraine .
Various EU countries are inclined to act against the transfer of LNG, which mostly reaches the EU through terminals in Belgium, France or Spain.
Specifically in the Spanish case, Russian LNG means losing the country’s third gas supplier, after Algeria and the US, and approximately a fifth of the gas supply.
In 2023, Russian LNG accounted for 18% of the gas consumed in Spain, but in this first quarter of 2024 the share has risen to 23%.
The company Naturgy is the one that would be affected by this measure since it has signed a contract with Yamal LNG. This is a take or pay contract, which cannot stop buying because if not it loses the LNG, so it would be forced to sell it in another market.
Other traders have chosen to unload Russian LNG in Spanish terminals, which is why Russia has increased the quota compared to other years during the crisis.
The case of Belgium
Likewise, last Friday the Belgian Government decided to join those who support the progressive elimination of the transfer of Russian LNG in the EU, but asked that this suppression not compromise the security of supply and prices.
In Belgium, the operator of the liquefied natural gas transportation network, the company Fluxys, has a 25-year contract with the Russian company Yamal LNG to transfer and store LNG – most of which is then re-exported to Asia – at its terminal. from the port of Zeebrugge, according to the newspaper “Le Soir”.
Belgium will also request an embargo on imports of Russian nuclear fuel rods, since uranium from Russia is not currently subject to sanctions.
In parallel, Sweden and the Baltic countries insist on reacting against the “shadow” Russian fleet that, through the Baltic Sea and using ships flying the flag of third countries, makes it easier for Moscow to continue exporting oil banned by the EU.
They warn that environmental risk is added when ships that are not suitable for sailing are used in this fleet.
New sanctions package
The new sanctions package will continue to refine measures to prevent Moscow from circumventing the restrictions already in force.
After 13 packages of sanctions imposed by the West on Russia, Moscow continues to export pipeline gas and LNG, redirecting supplies to Asia and particularly China.
On the other hand, the European Parliament supported on April 11 new regulations on gas markets – which must still receive the approval of the EU Council – which contemplates the possibility that Member States can limit, in a coordinated manner, access of Russian and Belarusian gas to the networks through pipelines or LNG terminals.
EU purchases of Russian pipeline gas since the invasion of Ukraine have fallen by 71%, but sales of liquefied natural gas have remained stable.
Most of this LNG reaches the EU through the terminals of France, Belgium or Spain, the latter country that demanded a coordinated community response to prevent the unilateral ban in one country from serving only for LNG carriers with Russian gas to seek other ports in community territory.
