The European Union is planning to implement a 19th package of sanctions against Russia that includes a ban on imports of Russian liquefied natural gas (LNG), with the goal of phasing them out by January 1, 2027. This is a year earlier than the previously planned phase-out.
Key Details of the Sanctions
The proposal, which needs unanimous approval from all 27 EU member states, is aimed at depriving Russia of revenues that sustain its economy. European Commission President Ursula von der Leyen stated that the move is part of the EU’s broader effort to cut off a key source of funding for Russia. The proposed sanctions package also targets other areas, including:
- Russia’s shadow tanker fleet, with more vessels being added to the sanctions list.
- Cryptocurrency platforms to close financial loopholes used to evade existing sanctions.
- Third-country entities in places like China, including refineries and oil traders, that are found to be in breach of sanctions.
- Banks in Russia and Central Asia.
- Dual-use goods, by targeting a customs loophole used by Russia to import these items for its military.
Potential Impact and Geopolitical Context
This proposed ban on Russian LNG could lead to several significant shifts in the energy market. For the EU, it means preparing to secure alternative sources of gas to cover any potential supply shortfalls. The U.S. is a major producer of LNG, and increasing energy dependency on the U.S. is a noted risk.
Russia, for its part, has stated that a faster phase-out would not force it to change its position. While Russia’s share in EU LNG imports has already decreased, countries like Spain, Belgium, the Netherlands, and France still import a significant amount of Russian LNG. The proposal faces potential hurdles from countries that are more dependent on Russian energy, such as Hungary and Slovakia.
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Source: Reuters
